Summary:
The Fed's core PCE rose 2.7% in May, above expectations. Policymakers consider rate cuts as consumer spending and income cool.
PCE price index June
31/7/2025 (Thu)
Previous: 2.7% Forecast: 2.7%
The Fed's preferred inflation gauge, the core PCE price index, rose 2.7% year-over-year in May. This was higher than the expected 2.6% growth and a pickup from 2.6% in April.
Policymakers are currently debating whether inflation is tame enough to resume rate cuts. Along with the inflation numbers, consumer spending and income showed further signs of weakening.
Many consumers had bought imported products in March and April in anticipation that tariffs would drive up prices. People have also gotten nervous about the state of the economy, according to consumer surveys.
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