27.06.2025 12:46

Consumer prices experienced a modest uptick in May, according to a Commerce Department report released on Friday. The report, detailing the Personal Consumption Expenditures (PCE) price index – the Federal Reserve's preferred inflation gauge – revealed a 0.1% seasonally adjusted monthly increase. This places the annual inflation rate at 2.3%, aligning precisely with economists' predictions from Dow Jones.

A closer examination of the core PCE, which excludes the often volatile food and energy sectors, reveals a 0.2% monthly increase and a 2.7% annual rate. Although economists anticipated a 0.1% monthly rise and a 2.6% annual rate, the actual figures slightly exceeded these expectations. The Federal Reserve, in its focus on long-term economic trends, views the core PCE as a more reliable indicator due to the historical price fluctuations in food and energy.

This slight uptick in inflation, while modest, presents a further divergence from the Federal Reserve's target inflation rate. The deviation underscores the ongoing challenges the central bank faces in managing the nation's economic trajectory. The data warrants further analysis and is likely to influence forthcoming monetary policy decisions. Further updates will be provided as more information becomes available. The information in this report originates from internet sources.