#USCorePCEMay

The US Core PCE inflation rate for May rose to 2.7% year-over-year, exceeding forecasts of 2.6%. Here's a breakdown of the key figures ¹ ²:

- *Core PCE Inflation Rate*: 2.7% year-over-year, up from 2.6% in April

- *Monthly Core PCE Increase*: 0.2%, surpassing expectations of 0.1%

- *Headline PCE Inflation Rate*: 2.3% year-over-year, in line with forecasts

- *Monthly Headline PCE Increase*: 0.1%, matching expectations

The Federal Reserve closely monitors the Core PCE inflation rate, considering it a more accurate measure of underlying inflation. Despite the slightly higher inflation rate, markets expect the Fed to hold interest rates steady in July, with a 70% probability of a rate cut in September ² ³.

Some analysts believe the inflation data could influence the Federal Reserve's decision-making on rate cuts, particularly with the potential impact of tariffs on prices. Others suggest that higher inflation might delay rate cuts, while weakening demand could lead to monetary support ⁴.

Would you like more information on the implications of the Core PCE inflation rate or the Federal Reserve's monetary policy?