The Federal Reserve's preferred inflation gauge fell in June, as the pace of price growth pulled back amid volatility in energy markets. The monthly figure was cooler than the 0.2% predicted by the LSEG poll of economists, while the annual figure was in line with expectations. Compared with May's readings, headline PCE declined from 4.1% to 3.7%, while core PCE fell from 3.4% to 3.3%. The data predates July's sharp rebound in energy prices, which could put renewed upward pressure on inflation throughout the summer," Kenwell explained. "We continue to expect the Fed to be patient as it waits for more inflation data," Zentner added.