The latest PCE data shows a sharp rise. May’s headline PCE jumped 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 face fresh pressure to keep rates high. The data could push the Fed to hold off on planned cuts. Oil prices fell but did not slow 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