Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, climbed to 6.8% on a yearly basis in June from 6.3% in May, the US Bureau of Economic Analysis reported on Friday. This reading came in higher than the market expectation of 6.7%.

The Core PCE Price Index, the Fed's preferred gauge of inflation, rose to 4.8% from 4.7% in the same period.

Further details of the publication revealed that Personal Spending and Personal Income rose by 1.1% and 0.6%, respectively, on a monthly basis in June. Both of those prints surpassed analysts' forecasts.

Market reaction

The US Dollar Index rose sharply with the initial reaction to this report and was last seen rising 0.18% on the day at 106.40.