A closely watched report released by the Commerce Department on Thursday showed consumer prices in the U.S. increased in line with economist estimates in the month of June.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in June after inching up by an upwardly revised 0.2 percent in May.
The annual rate of growth by the PCE price index accelerated to 2.6 percent in June from an upwardly revised 2.4 percent in May.
The report said the core PCE price index, which excludes food and energy prices, also rose by 0.3 percent in June after edging up by 0.2 percent in May.
The annual rate of growth by the core PCE price index for June came in at 2.8 percent, unchanged from an upwardly revised reading for May.
The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.
The report said personal income rose by 0.3 percent in June after falling by 0.4 percent in May. Economists had expected personal income to edge up by 0.2 percent.
Disposable personal income, or personal income less personal current taxes, also climbed by 0.3 percent in June after decreasing by 0.5 percent in May.
The Commerce Department said personal spending also increased by 0.3 percent in June after coming in flat in May.
Excluding price changes, real personal spending crept up by 0.1 percent in June after dipping by 0.2 percent in May.
With personal income and spending both rising, personal saving as a percentage of disposable personal income in June came in unchanged from the previous month at 4.5 percent.