Inflation slowed more in June, although it remained over the Federal Reserve's objective.
The personal consumption expenditures price index was up 0.2 percent from a month ago, a small increase over the 0.1 percent gain in May. The PCE pricing index is up three percent year on year.
The Fed has stated that it aims for two percent PCE inflation.
Core PCE inflation, which excludes food and energy prices, increased 4.1 percent year on year. Prices gained 0.2 percent for the month, down from 0.3 percent in May and 0.4 percent in April.
Prices for products fell by 0.1 percent, while prices for services rose by 0.3 percent. Food costs fell 0.1 percent, but energy prices rose 0.6 percent. Prices for durable goods dropped for the month. Used and new automobile prices were lower.
Wages and benefit expenses grew 1% in the second quarter, according to a different gauge that analyzes compensation costs. This was somewhat less than the predicted 1.1 percent gain. Earnings and wages grew by 1.0 percent, while benefit expenses climbed by 0.9 percent, beginning in March 2023. For the fiscal year ending June 2023, compensation expenses for civilian workers climbed by 4.5 percent. Private sector compensation costs were up 4.5 percent.