US Inflation Picks Up in June; Consumer Spending Rises Moderately

#USEconomy #Inflation #ConsumerSpending #EconomicData #FederalReserve #InterestRates #CostOfLiving #RetailSales #EconomicOutlook #MonetaryPolicy US inflation accelerated slightly in June, with the core PCE price index rising 0.2% monthly and 2.8% annually – still above the Fed's 2% target. The data shows persistent price pressures, particularly in services, even as goods inflation eases. Meanwhile, consumer spending grew just 0.3%, suggesting Americans are becoming more cautious with household budgets. The mixed signals leave the Fed in a delicate position as it weighs when to cut interest rates. While wage growth supports spending, elevated prices for essentials like housing and healthcare continue squeezing consumers. Markets remain focused on whether this "goldilocks" scenario – moderating but not collapsing demand – will allow a soft landing.