The latest PCE data shows a sharp rise. May’s headline PCE jumped to 4.1%, the highest in 2021. The core reading reached 3.4%, up from last month. Both numbers came in well above expectations.
Consumer spending stayed strong last month. Officials now spot fresh pressure to hold rates high. The data could push the Fed to postpone 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