#USCorePCEMay

The US Core Personal Consumption Expenditures (PCE) Price Index for May rose to 2.7% year-over-year, slightly above the forecasted 2.6%. This increase indicates a steady inflationary pressure in the US economy. Here are the key details¹ ²:

- *Core PCE Price Index*: Increased by 0.2% month-over-month and 2.7% year-over-year in May, exceeding expectations.

- *Headline PCE Inflation*: Rose to 2.3% year-over-year in May, meeting market expectations.

- *Personal Income and Spending*: Declined by 0.4% and 0.1%, respectively, indicating weakening demand.

The Federal Reserve closely monitors the Core PCE Price Index as it provides insight into underlying inflation trends, excluding volatile food and energy prices. This data will likely influence the Fed's decision on interest rates, with markets currently expecting a 70% probability of a rate cut in September.#USCorePCEMay #