🔍 US May PCE Inflation – Key Update

Inflation came in slightly hotter than expected, keeping the Fed cautious on rate cuts:

📊 Core PCE (Fed’s key focus):

• YoY: 2.7% 🔺 (vs 2.6% expected & April)

• MoM: 0.2% 🔺 (vs 0.1% expected)

📊 Headline PCE:

• YoY: 2.3% ✅ (matched forecast, up from 2.2%)

• MoM: 0.1% ✅ (in line with expectations)

💵 Consumer Trends:

• Income edged down slightly

• Spending growth softened – hinting at cooling demand

🧠 What It Means:

Sticky core inflation suggests the Fed may delay rate cuts, even as consumer strength begins to wane.