Key inflation measure rises by most in three years in April as gasoline prices spike
Core inflation also rose to 3.3%, and consumers saw spending increase only 0.1% after adjusting for inflation, the Commerce Department said.
- On Thursday, the Commerce Department reported the Personal Consumption Expenditures price index rose 3.8% annually in April, the highest rate in nearly three years under new Federal Reserve chief Kevin Warsh.
- Inflation is flaring largely due to the Iran war's impact on energy prices, creating a major challenge for Warsh as he steps into the Federal Reserve role.
- Consumers took their foot off the pedal, with spending rising 0.5% in April, a retreat from the 1% jump recorded the month before as Americans face rising costs.
- CME FedWatch data shows a 40% probability of a Federal Reserve rate hike in December, up from 3% in June, as some economists pencil in potential increases later this year.
- President Trump has expressed eagerness for the Federal Reserve to lower borrowing costs for consumers and businesses, complicating Warsh's challenge to balance growth with curbing inflation.
74 Articles
74 Articles
Fed’s preferred inflation gauge worsens as Iran war sends food, energy prices surging
US inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the war with Iran, and cementing economists' views that the Federal Reserve could hold interest rates unchanged well into next year.
US key inflation gauge worsens, eroding Americans’ income, spending power
A key inflation gauge accelerated in April to the highest level in three years, the latest sign that spiking gas prices and higher food costs are squeezing Americans’ finances. Inflation jumped to 3.8 per cent in April compared with a year ago, the Commerce Department said on Thursday, up from 3.5 per cent in March and the highest since May 2023. On a monthly basis, prices rose 0.4 per cent, down from the 0.7 per cent jump in March. The report s…
Inflation hit the highest level in almost three years as the Fed releases the first inflation report under new chair Kevin Warsh
A key inflation gauge accelerated in April to the highest level in three years, the latest sign that spiking gas prices and higher food costs are squeezing Americans’ finances. Inflation jumped to 3.8% in April compared with a year ago, the Commerce Department said Thursday, up from 3.5% in March and the highest since May 2023. On a monthly basis, prices rose 0.4%, down from the 0.7% jump in March. The report showed that prices have risen for ma…
U.S. April Personal Consumption Expenditures (PCE) Prices Rise 3.8%; Q1 Growth Downgraded to 1.6%. The U.S. Personal Consumption Expenditures (PCE) inflation rate for April reached its highest level in approximately three years. On the same day, the revised U.S. economic growth forecast for the first quarter of this year was lowered from the previous estimate. The U.S. Department of Commerce announced on the 28th that the April P
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