The latest PCE data shows a sharp rise. May’s headline PCE surged to 4.1%, the highest since 2021. The core reading hit 3.4%, up from last month. Both numbers came in well above forecasts.
Consumer spending remained strong last month. Officials now face fresh pressure to hold rates high. The data could force the Fed to hold off on planned cuts. Oil prices fell 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