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US inflation remained sticky in May as the Federal Reserve’s preferred price gauge accelerated on an annual basis despite meeting monthly expectations.
The headline PCE price index rose 0.4% from April and 4.1% from a year earlier, while core inflation held at 0.3% month-on-month and increased to 3.4% annually, according to data released by the Bureau of Economic Analysis on Thursday.
At the same time, household finances strengthened. Personal income rose 0.7%, rebounding from a flat reading in April, while consumer spending also advanced 0.7%. After adjusting for inflation, real personal consumption expenditures increased 0.3%, supported by higher spending on both services and goods.
Disposable income also climbed 0.7%, and the personal saving rate improved to 3%.
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English (US) · 