economy

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

The personal consumption expenditures price index was expected to show a 4.1% annual increase.

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

TL;DR

  • The core PCE price index reached a 3.4% annual rate in May, the highest since October 2023.
  • The all-items PCE index showed a 4.1% annual inflation rate, the highest since April 2023.
  • Energy prices were a primary driver of the inflation surge.
  • Consumer spending and personal income increased more than expected.
  • The Federal Reserve has adopted a tougher stance on inflation, emphasizing price stability.
  • Gross domestic product (GDP) rose at a 2.1% annualized pace in the first quarter.
  • Initial jobless claims fell to 215,000 for the week ended June 20.

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