USA: Inflation slightly higher than expected

Inflation in the USA fell to 2.5 per cent in June according to the so-called PCE measure. This can be compared with 2.6 per cent for May.

Despite the inflation going down, the figure came in slightly higher than expected. According to a compilation from Bloomberg, investors had expected an inflation of 2.4 per cent.

The PCE inflation is seen by the USA's central bank Federal Reserve (Fed) as the most important price increase measure when decisions on future interest rates are to be made.

In contrast to the more common CPI measure of inflation, which is based on a basket of goods, the PCE inflation is calculated on what is actually consumed.