US inflation and consumer spending accelerated last month, highlighting the steady price pressures and demand that will remain federal Reserve Policymakers were inclined to raise interest rates further.
personal consumption expenditure (pce) price index, one of irrigatedThe US’s favorite inflation gauge rose a faster-than-expected 0.4% in April, Commerce department Figures showed on Friday the measure climbed 4.4% from a year earlier.
The so-called core PCE index, excluding food and energy, rose 0.4% from last month and 4.7% from April 2022, which also exceeded projections. Consumer spending, adjusted for prices, rose 0.5% after remaining unchanged in March. The gain was the strongest since the start of the year and reflected a pickup in both goods and services.
While inflation has eased since peaking a year ago, resilient domestic demand is exerting risk-averse price pressures. That’s the challenge facing Fed officials as they debate whether to pause their rate-hike drive and assess the implications of tighter policy on the banking system and the economy more broadly.
personal consumption expenditure (pce) price index, one of irrigatedThe US’s favorite inflation gauge rose a faster-than-expected 0.4% in April, Commerce department Figures showed on Friday the measure climbed 4.4% from a year earlier.
The so-called core PCE index, excluding food and energy, rose 0.4% from last month and 4.7% from April 2022, which also exceeded projections. Consumer spending, adjusted for prices, rose 0.5% after remaining unchanged in March. The gain was the strongest since the start of the year and reflected a pickup in both goods and services.
While inflation has eased since peaking a year ago, resilient domestic demand is exerting risk-averse price pressures. That’s the challenge facing Fed officials as they debate whether to pause their rate-hike drive and assess the implications of tighter policy on the banking system and the economy more broadly.