PCE Gauge Falls 0.1% in June, First Drop Since 2020 — SkimNews
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- PCE index fell 0.1% in June 2026, its first monthly decline since 2020, per government data released Thursday
- The Federal Reserve took no action to raise borrowing costs this week, with the PCE drop underscoring that decision
- Lower oil prices after a temporary truce with Iran was the chief source of the inflation decline
- The article's headline warns that "danger far from over," signaling remaining inflation risks despite the June dip
Why it matters: The June decline gives the Fed cover to keep rates steady, but the drop depends on oil prices staying subdued — a temporary Iran truce, not a structural shift, is doing the heavy lifting. If that truce collapses, the PCE reversal could come as quickly as the relief.
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