Latest economic data shows that inflationary pressures in the United States are rising again, while consumer spending growth appears weak, casting a shadow over the outlook for the U.S. economy.

The June data released by the U.S. Bureau of Economic Analysis surprised the market. The PCE price index rose 2.6% year-on-year, exceeding the expected 2.5%. More notably, the core PCE price index, closely monitored by the Federal Reserve, rose 2.8% year-on-year, reaching a four-month high and surpassing the market expectation of 2.7%.

Inflationary pressures mainly come from the services sector, with service prices showing an accelerating upward trend. At the same time, the cost of durable goods has also accelerated on a month-on-month basis. It is worth noting that the significant rise in household goods prices may be related to the current trade tensions. In addition, healthcare costs have also begun to climb, further pushing up the overall price level.

However, despite the rise in prices, consumer spending has not seen a corresponding rise. In June, inflation-adjusted real consumption expenditure only rose by 0.1%, failing to reverse the decline from the previous month. Durable goods expenditure has declined for the third consecutive month, marking the longest continuous downward cycle in nearly two years. Service expenditure also remains at a low level.

The rise in inflationary pressure coexisting with insufficient consumer momentum has sent contradictory signals about the U.S. economy. This will undoubtedly increase the difficulty for the Federal Reserve in formulating monetary policy, making the future economic direction even more uncertain.

As the labor market gradually cools down, consumer confidence may be further impacted. This complex economic situation will test the wisdom of decision-makers, and finding a balance between controlling inflation and stimulating economic rise will become a key challenge in the near future.