WASHINGTON: U.S. prices 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 expenditures (PCE) price index nudged up 0.1% last month after being unchanged in May, the Commerce Department's Bureau of Economic Analysis said on Friday. In the 12 months through June, the PCE price index climbed 2.5% after rising 2.6% in May.