More from the article ...

... But with oil prices falling to pre-war levels on Thursday after the United States and Iran signed a preliminary peace deal, inflation likely peaked last month or is close to doing so. While easing oil prices could dampen goods inflation, that could be offset by more expensive services. Economists expected overall inflation to remain elevated for a while.

Financial markets are anticipating a rate hike from the U.S. central bank in September.

"PCE price inflation remains too high and will keep the Fed on hold and mulling a potential rate hike at upcoming meetings," said Scott Anderson, chief U.S. economist at BMO Capital Markets.

"Services inflation was even higher than goods inflation last month and will not be easily tamed by falling energy prices. The fight between the hawks and the doves is sure to remain intense."

The personal consumption expenditures price index surged 4.1% in the 12 months through May, the largest increase and first reading above 4.0% since April 2023, the Commerce Department's Bureau of Economic Analysis said on Thursday. PCE inflation rose by an unrevised 3.8% in April. ...

Meanwhile, memory-chip maker Micron announced quarterly results yesterday and talked about a 85% gross margin ...