The latest PCE data shows a sharp rise. May’s headline PCE climbed to 4.1%, the highest in 2021. The core reading reached 3.4%, up from last month. Both numbers came in well above forecasts.
Consumer spending remained strong last month. Officials now spot fresh pressure to maintain rates high. The data could lead the Fed to hold off on planned cuts. Oil prices declined but did not cool the gains.
Core inflation rate hit 3.4% in May, highest since October 2023, Fed's preferred gauge shows CNBC
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Breaking: US core PCE inflation rises to 3.4% in May as expected FXStreet