A key measure of inflation that the Fed watches closely reached its lowest level in almost two years.

<div class="block">A key measure of inflation that the Fed watches closely reached its lowest level in almost two years.</div>

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Key Inflation Gauge Hits Lowest Level in Nearly 2 Years

A key measure of inflation that the Federal Reserve watches very closely has reached its lowest level in almost two years. Core personal consumption expenditure which excludes food and energy costs rose 4.1% in June from a year ago. That's the lowest annual rate since September of 2021. Core PCE was up 0.2% in June from May. And this comes after the fed raised interest rates for the 11th time since last March as it works to lower inflation.