The Federal Reserve's preferred inflation measure moved down 0.1% in June as energy prices fell, but it was still 3.7% higher than a year earlier. The core measure, which excludes food and energy, rose 0.1% for the month and 3.3% over the year.
Income and spending both increased
- Personal income: up 0.2% during June.
- Consumer spending: up 0.3% in current dollars and 0.4% after adjusting for prices.
- Personal saving rate: 2.7% of disposable income.
The spending increase was concentrated in services, which accounted for $58.2 billion of the $65.2 billion monthly increase.
What the annual number means
A lower monthly reading is welcome, but one month does not erase the increase accumulated over the year. Household experiences also differ because rent, food, transportation, and insurance do not move at the same rate.
Check your own exposure
Use The Real Raise to compare pay with inflation, or Idle Cash to estimate how inflation changes savings purchasing power.
Source: U.S. Bureau of Economic Analysis - Personal Income and Outlays, June 2026. Released July 2026; checked August 2, 2026. Initial economic estimates can be revised.