US EditionKey inflation gauge rose last month while Americans cut back on spending
- At the end of June, the Bureau of Economic Analysis reported a 0.5% annualized GDP contraction, the slowest since Q2 2020, amid a record goods trade deficit.
- Following pre-tariff buying, American consumers' real spending declined 0.3% as households pulled back after earlier surge caused by Trump’s 2025 import levies.
- The BEA reported May data showing real spending fell 0.3%, personal income dropped 0.4%, and headline PCE inflation rose 0.1% monthly and 2.3% annually.
- Markets showed little reaction, with futures pricing a September rate cut, reflecting cautious expectations amid weak economic data and persistent inflation.
- Ahead of the July 31 policy meeting, the Federal Reserve's data-dependent approach leaves markets uncertain amid persistent inflation and weak growth signals.
108 Articles
108 Articles
'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…
Inflation Creeps Higher While Spending Dips, Complicating Fed Rate Cut Hopes
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. Prices rose 2.3% in May compared with a year ago, up from just 2.1% in April, the Commerce Department said Friday. Excluding the volatile food and energy categories, core prices rose 2.7% from a year earlier, an increase from 2.5% the previous month. Both figures are modestly above the Fe…
Washington, 27 Jun (EFE).- The price index of personal consumption expenditure (PCE) in the US, key data for the Federal Reserve (Fed) in its decisions on interest rates, closed the month of May with an annual increase of 2.3%, an increase of two tenths compared to 2.1% in April, according to the Office of Economic Statistics (BEA) this Friday. The new indicator returns to the same level as reported in March and is in line with the expectations …
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