US EditionKey inflation gauge rose last month while Americans cut back on spending
- The U.S. Commerce Department reports May consumer spending declined 0.1% after April's 0.2% rise, amid rising inflation, indicating economic slowdown.
- Following early-year surges, real personal consumption expenditures declined 0.3%, while personal income fell 0.4% due to reversing government benefit gains.
- The US PCE price index increased 2.3% year-on-year in May, with the Fed's preferred inflation measure showing no tariff-driven acceleration, indicating inflation remains under control.
- Futures markets price in at least one rate cut by September as the Federal Reserve considers easing amid weak spending and rising inflation.
- Federal Reserve officials plan to scrutinize tariff impacts over summer, as some policymakers cite weak income growth and muted inflation to justify potential rate cuts in coming months.
145 Articles
145 Articles
Consumer spending falls; fed eyes possible tariff impact on inflation
U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of the Trump administration's tariffs faded, while monthly inflation maintained a moderate pace of increase.
The Billings Gazette
Consumers cutting back as inflation ticks higher
WASHINGTON — A key inflation gauge moved higher in May in the latest sign that prices remain stubbornly elevated while Americans also cut back on their spending last month.
U.S. consumer spending drops as inflation pressure looms from tariffs | Honolulu Star-Advertiser
WASHINGTON >> U.S. consumer spending unexpectedly fell in May as the boost from the pre-emptive buying of goods like motor vehicles ahead of the Trump administration’s tariffs faded, while monthly inflation maintained a moderate pace of increase.
'Big drop in income': Chief economist reveals real inflation numbers
A decelerating economy is driving down personal income and spending in the U.S., reports RSM US LLP Chief Economist Joseph Brusuelas.“… [A] slowing economy results in big drop in income and inflation adjusted spending,” Brusuelas posted on X, citing a May Spending & PCE Price Index revealing personal income declining $109.6 billion (0.4 percent at a monthly rate) in May.Information provided by the U.S. Bureau of Economic Analysis specifically sh…
Washington, United States.Inflation in the United States rebounded again in May, according to the official CPE index published this Friday, which is a reference for the Fed, in line with what was expected by analysts.The price index based on personal consumption expenditure (PCE) increased by 2.3% in the 12 months ending in May, compared to 2.2% recorded the previous month (upgraded value), the Department of Commerce reported.The data comes at a…
Coverage Details
Bias Distribution
- 60% of the sources are Center
To view factuality data please Upgrade to Premium
