U.S. core PCE rises 0.1% in June, below forecast

U.S. core PCE rises 0.1% in June, below forecast U.S. core personal consumption expenditures prices rose 0.1% month over month in June, below the 0.2% increase expected by economists, according to the U.S. Bureau of Economic Analysis. On a year-over-year basis, the index rose 3.3%, matching forecasts. The core PCE price index, which excludes volatile energy and food prices, is widely viewed as a key inflation gauge for the Federal Reserve. A reading above expectations can weaken expectations for Fed rate cuts, while a softer-than-expected figure can be interpreted as a sign of easing inflation and strengthen expectations for rate cuts. Risk assets generally tend to rise when expectations grow for greater liquidity tied to lower interest rates.