Core PCE, the Fed’s preferred measure of inflation, grew 1.5% over last year.

Economists were expecting core PCE, which measures prices paid for consumer goods excluding food and energy, to climb 1.5% year-over-year.

On a monthly basis, core PCE grew 0.2%, which was in line with expectations.

PCE differs from the consumer price index, or CPI, report in a few ways and is typically lower than the CPI.

Last week, the May CPI report showed inflation climbed 2.1% year-over-year, and 0.4% month-over-month.

Personal income increased 0.4%, in line with expectations. Personal spending, however, grew 0.2%, below the 0.4% increase that was expected.

The May price index increased 1.8% year-over-year which was in line with expectations.

Since last week’s CPI report, inflation has come to the fore as a major part of the discussion about where the economy is headed. The Federal Reserve says that it aims for 2% inflation and full employment, but inflation has long undershot the Fed’s target.

This chart from the BEA shows recent PCE readings.

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