a key indicator of us inflation cooled in june to the lowest annual rate in over two years said government data released friday although it remains above the central banks target the federal reserves preferred gauge of inflation the personal consumption expenditures pce price index rose 30 percent last month from june 2022 down from a 38 percent rise in may said the commerce department from may to june the pce price index ticked up 02 percent a touch above the 01 percent rate in the previous month personal consumption expenditures rose 05 percent while the rise in personal income moderated as well with costofliving pressures escalating in the past year the fed lifted interest rates rapidly to tamp down demand and rein in prices  and the effects of its moves have been rippling through the worlds biggest economy inflation has come down from last years peak and retail sales has weakened with consumers pressured by higher borrowing costs and stillelevated prices but the labor market has remained strong with historically low unemployment fueling hopes that the us economy can achieve a soft landing in which inflation eases without triggering a major downturn in june prices for goods were seen slipping even as the costs of services picked up from a year ago while the direction in which inflation is headed will be positive news for policymakers the figure remains higher than the central banks two percent target suggesting more actions might be taken by officials excluding the volatile food and energy components the pce price index rose 41 percent from a year ago last month easing from mays 46 percent rate as well