The personal consumption expenditure (PCE) price index rose 0.1% last month after remaining unchanged in May, the Department of Commerce's Bureau of Economic Analysis reported this Friday.

Prices in the United States rose moderately in June, underscoring an improving inflation environment that potentially positions the Federal Reserve to begin cutting interest rates in September.

The personal consumption expenditure (PCE) price index rose 0.1% last month after remaining unchanged in May, the Department of Commerce's Bureau of Economic Analysis reported this Friday.

In the 12 months to June, the PCE price index rose 2.5% after rising 2.6% in May.

Excluding the volatile food and energy components, the personal consumption price index rose 0.2% last month, following an unrevised 0.1% increase in May.

Economists surveyed had forecast that both monthly headline inflation and core inflation would rise 0.1% in June.

Following Thursday's Gross Domestic Product data, which showed that core inflation rose slightly faster than expected in the second quarter, some raised their estimate of the core PCE price index to 0.2%.

The PCE's forecasts for headline inflation remained virtually unchanged.

Overall, price pressures are easing and could help give Fed officials, who meet next week, more confidence that inflation is moving closer to the U.S. central bank's 2% target.

The Fed follows the PCE price measures for monetary policy.