The latest PCE data shows a sharp rise. May’s headline PCE climbed to 4.1%, the highest since 2021. The core reading landed at 3.4%, up from last month. Both numbers came in well above analyst views.
Consumer spending held strong last month. Officials now see fresh pressure to hold rates high. The data could push the Fed to delay planned cuts. Oil prices eased but did not cool the gains.
Core inflation rate hit 3.4% in May, highest since October 2023, Fed's preferred gauge shows CNBC
US PCE inflation measure tops 4.0% in May; consumer spending strong Reuters
US May PCE inflation 4.1% vs 4.1% expected investingLive
Inflation report could fuel concerns over higher interest rates, even as oil prices fall NBC News
Breaking: US core PCE inflation rises to 3.4% in May as expected FXStreet