Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows
Core inflation rose to 3.4% and spending increased 0.3%, strengthening bets that the Federal Reserve will keep rates higher for longer.
- The Commerce Department reported annual inflation reached 4.1% in May, up from 3.8% the previous month and the highest level in three years, driven by high gas prices in the Personal Consumption Expenditures price index.
- Core inflation, which excludes volatile food and gas prices, rose to a 3.4% annual rate from 3.3% in the prior period, according to the latest Commerce Department data.
- Monthly PCE accelerated 0.4%, while core PCE rose 0.3%, both figures aligning with the Dow Jones consensus estimate for the monthly reading.
- Stronger-than-Expected inflation readings push the timeline for potential interest rate cuts further out, reinforcing The Federal Reserve's recent tough stance against persistent price pressures.
- Financial markets are currently pricing in the possibility of rate hikes later this year, despite President Donald Trump repeatedly pushing the Fed to cut rates.
123 Articles
123 Articles
The Fed's Preferred Inflation Metric Just Topped 4%. Here's What That Might Mean for Future Interest Rates
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Inflation Just Hit a 9-Month High: The Fed's Favorite Gauge Is Flashing Red Again
The post Inflation Just Hit a 9-Month High: The Fed’s Favorite Gauge Is Flashing Red Again appeared first on 24/7 Wall St.. Rick Santelli warns core PCE hit 3.4% in May, highest since October 2023, creating hawkish inflation backdrop that challenges Fed rate-cut expectations. Economy shows split: business investment and personal income accelerated while consumer spending fell to weakest level since Q1 2022, giving Fed conflicting signals. If …
Inflation hits 4.1 percent in May: 5 takeaways
Federal inflation data released Thursday showed prices rising at the fastest annual rate in three years, posing serious challenges for President Trump and policymakers. The Federal Reserve’s preferred gauge of inflation showed prices rising 4.1 percent over the past year and 0.7 percent in May alone. While much of the increase came from higher energy…
Key Inflation Gauge Jumps to 3-Year High
The Federal Reserve's preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for President Trump and his political party as midterm elections near. Consumer prices rose 4.1% in May from a year earlier, the Commerce...
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