Inflation-adjusted gross domestic product increased an annualized rate of 1.5% in Q2.

The core PPI rose 4.7% in June from a year earlier, lower than expected, according to BLS data out yesterday,

The PCE price index rose 4.1% in May year-over-year, the most since April 2023; excluding food and energy, prices were up 3.4%.

In May, the BLS's import price index rose 6.7% from a year earlier, adding further proof of the inflationary impact of the Iran war and the data center boom.

Last month, the PPI increased 6.5% from May 2025 and 1.1% from April 2026.

Fed officials are widely expected to hold rates steady this month, but investors expect the Fed to raise rates by the end of the year in response to higher inflation.

Non-farm U.S. payrolls grew by 172,000 last month, while unemployment held steady at 4.3%.

Revised expectations push the next Fed interest rate cut out farther.