Fed's preferred inflation reading shows prices jump 3.5% annually

The core personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, accelerated in June by the most on an annual basis in almost three decades.

Core PCE, which excludes food and energy, increased 3.5% year over year in June, according to the Bureau of Economic Analysis. The reading, which was the highest since July 1991, was up fractionally from last month's 3.4% print. 

Prices rose 0.4% on a monthly basis, slowing from the 0.5% increase in May.

Wall Street analysts surveyed by Refinitiv were anticipating prices would climb 3.7% annually and 0.6% month over month.