The core index that omits energy and food costs also rose by 0.3% in June, but the annual rate ticked up to 2.8% from 2.7% and slightly above forecasts. Personal spending rose by 0.3%, below the 0.4% forecast but still suggesting consumers are willing to continue shopping.

Poland’s inflation rate returned to the central bank’s target for the first time in over a year, fueling discussion about further interest rate reductions, possibly as soon as in September.

The Fed kept rates at 4.25% to 4.5% despite President Donald Trump’s push for cuts and rising inflation from tariffs.