Core inflation rises to 3.4% in May, CNBC says
Core inflation rises to 3.4% as the Fed’s preferred gauge heats up See what May’s PCE report means for inflation and interest-rate policy
Core inflation accelerated in May, reaching 3.4%, the highest level since October 2023, according to the Federal Reserve’s preferred price measure.
The reading came from the personal consumption expenditures price index, a key inflation gauge watched closely by policymakers and markets. Economists surveyed by Dow Jones had expected a 4.1% annual increase.
The report adds to the data the Federal Reserve will consider as it assesses the path of inflation and interest rates.