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.

The Fed's rate-setting committee is scheduled to meet later this week as Trump continues to push for looser monetary policy.

The Federal Reserve will release its interest rates decision Wednesday, but it's unlikely to cut rates. Trump has lobbied against Fed Chair Jerome Powell.