The personal consumption expenditure index, the Federal Reserve's preferred inflation barometer, increased 0.9% year-on-year in June, unchanged from in the prior month and in line with expectations. The annual rate of core inflation was flat at 1.6%, as expected. The Federal Reserve is targeting 2% inflation.

Personal spending rose 0.4% in June, beating estimates of 0.4% growth, while personal incomes climbed 0.2%, missing forecasts for a 0.3% increase.