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<h2>No relief on the inflation front</h2>
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<p>Inflation is continuing to heat up according to today’s core Personal Consumption Expenditures (PCE) report.&nbsp; Core PCE, which is the Federal Reserve’s preferred inflation measure, rose to 3.4% in May – the highest level since 1992.&nbsp; This is well above the Fed’s 2% inflation target for the second straight month, and as a result, Fed officials have started to feel pressure to scale back on their stimulus efforts.&nbsp; While the debate rages on as to the persistence of today’s pricing pressures, as long as the leading inflation gauges are moving higher (see last Friday’s <a href="https://ns2020-investech.investech.com/subscriber-library/a-leading-inflation-indicator-points-higher/" target="_blank" rel="noreferrer noopener">report</a>), any inflationary surprises will likely continue to be to the upside.</p>
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