#USCorePCEMay

The May 2025 US Core Personal Consumption Expenditures (PCE) price index, a key inflation gauge for the Federal Reserve, showed a slight uptick. Released on June 27, 2025, the annual Core PCE rose to 2.7%, exceeding the 2.6% consensus forecast and inching up from April's 2.6% (revised from 2.5%). On a monthly basis, Core PCE increased by 0.2%.

This data indicates that underlying inflation, excluding volatile food and energy prices, continues to be persistent. While the overall PCE Price Index increased by 2.3% year-over-year, in line with expectations, the core measure's rise suggests that the Federal Reserve's path to its 2% inflation target remains challenging. Policymakers will closely scrutinize these figures as they consider future monetary policy decisions, with potential implications for interest rates and the broader economic outlook. $USDC