According to new data put out by the Bureau of Economic Analysis (BEA) on Friday, the personal consumption expenditures (PCE) index increased 6.8% in June, the highest yearly increase since January 1982. The month-to-month change in PCE was also the highest since February 1981, when the PCE also jumped 1% from the previous month.
The PCE index also found core inflation (removing food and energy prices) up 4.8% yearly, which was higher than the previous month’s increase. The numbers exceeded Dow Jones estimates for inflationary increases.
The new inflation numbers also come as the U.S. officially entered a recession on Thursday, as gross domestic product decreased for a second consecutive quarter.
The BEA’s first estimate of the nation’s gross domestic product was worse than the predicted expansion of…