The advance estimate of US gross domestic product for the April–June quarter, released by the Commerce Department, rose at an annualized rate of 1.5 percent quarter-on-quarter, slowing from the 2.1 percent gain in the January–March quarter and missing market expectations. Meanwhile, personal consumption accelerated to a 3.2 percent annualized pace from 0.5 percent in the prior quarter, marking the strongest reading since the July–September quarter last year. Business investment was also solid at 15.2 percent, with AI-related spending continuing to show strength. The GDP price index, or deflator, surged to 6.2 percent from 3.6 percent in the previous quarter, hitting its highest level since June 2022. Real final sales to domestic purchasers accelerated to 3.9 percent, underscoring resilient domestic demand, while the sharp rise in the deflator may keep the Federal Open Market Committee focused on price trends.