#PCEMarketWatch
Inflation Slows in April 2025
The PCE index, the Federal Reserve's preferred measure of inflation, rose by only 0.1% in April, marking the lowest monthly increase since the onset of the COVID-19 pandemic.
On a year-over-year basis, the inflation rate reached 2.1%, the lowest level since 2021, approaching the Federal Reserve's target of
2%
🏠 Housing Costs and Core Inflation
Despite the general slowdown in inflation, housing costs remain high, increasing by 4% year-over-year, which could lead to a resurgence of inflation in the second half of 2025.
🌐 Trade Tensions and Their Potential Impact
The Trump administration imposed new tariffs on China, raising concerns about their effect on prices and the potential for increased inflation in the future.
This led to volatility in financial markets, as stock indices fell, bond yields rose, and the dollar weakened against the yen.
