WASHINGTON, July 31 (Xinhua) -- U.S. inflation rose in June as the Federal Reserve weighs whether to continue to hold rates steady or cut them later this year.
The personal consumption expenditures (PCE) price index, the central bank's preferred inflation gauge, increased 0.3 percent month-on-month in June, according to data released Thursday by the U.S. Bureau of Economic Analysis.
The data came just a day after the Fed announced it would hold rates steady.
The PCE rose year-on-year by a much heftier 2.6 percent, higher than economists' estimates.
Core PCE, which strips out volatile food and energy prices, rose 0.3 percent month-on-month and 2.8 percent year-on-year.
The Fed is under pressure from the White House to cut rates, as U.S. President Donald Trump believes lower rates will accelerate economic growth.
But many economists fear that lower rates could spur more inflation, at a time of record-high prices for food and shelter. ■