Headline inflation, as measured by the personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred inflation measure, was 0.2% in May and 0.9% Y-o-Y. Core inflation, which excludes food and energy, was also 0.2% in May and just 1.6% Y-o-Y. While core PCE is meaningfully below the Fed’s 2% target, it’s fortunately stable. However, Brexit, and the European weakness it has created, will prevent it from soon rising much.