While the consumer price index is more commonly known, the Fed relies heavily on the PCE for deciding its stance on monetary policy. At the moment, the Fed is keeping interest rates high – and borrowing costs for consumers elevated – as it wants to see more data on how President Donald Trump’s import tariffs are affecting inflation.

The Federal Reserve's targeted inflation measure ticked slightly higher in May, but the numbers didn't show a big tariff-related upswing. Prices rose by 2.3% over the 12 months through May, according to the personal-consumption expenditures price index,

NEW YORK (Reuters) -Federal Reserve Bank of Richmond President Thomas Barkin said Thursday tariffs are very likely to push inflation up over coming months, in remarks that said central bank policy is where it needs to be to deal with what lies ahead.