US EditionKey inflation gauge rose last month while Americans cut back on spending
UNITED STATES, JUN 27 – The Federal Reserve's preferred inflation gauge rose 2.7% annually in May while consumer spending fell 0.1% and personal income dropped 0.4%, reflecting economic challenges amid persistent price pressures.
- In May, the U.S. Commerce Department reported that personal spending fell 0.1%, personal income dropped 0.4%, and the PCE index rose 2.3% year-over-year.
- Mounting tariff front-loading and waning Social Security benefits contributed to a consumer spending pullback in May, despite high interest rates not yet triggering inflation acceleration.
- The BEA reports the PCE index rose 0.1% monthly and 2.3% annually, with core inflation up to 2.7%, indicating persistent price pressures.
- Despite persistent inflation, the Federal Reserve keeps rates steady as traders expect a September rate cut, Treasury yields rise, and stock indexes decline, reflecting market uncertainty.
- September rate-cut odds near 90%, with July 9 tariff-deal announcements and final international agreements influencing trade policy outlook.
148 Articles
148 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…
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