#USCorePCEMay The May 2025 report on the Personal Consumption Expenditures (PCE) Price Index —the preferred inflation measure by the U.S. Federal Reserve— showed the following:
📊 Key findings from the May 2025 PCE report
Overall inflation (PCE): increased by 0.1% month-on-month and 2.3% year-on-year, in line with market expectations2.
Core inflation (Core PCE): excluding food and energy, rose by 0.2% month-on-month and 2.7% year-on-year, slightly above expectations.
What does this mean?
Although inflation remains above the Fed's 2% target, the pace of increase is moderate.
The decline in spending and income suggests that consumers are starting to hold back, possibly due to the impact of recent tariffs and economic uncertainty.