#USCorePCEMay The US Core PCE (Personal Consumption Expenditures) inflation index for May rose 2.7% year-over-year, exceeding expectations of 2.6%. This is the Federal Reserve's preferred measure of inflation, which excludes volatile food and energy prices.

Here are the key highlights¹ ²:

- *Core PCE Inflation*: Increased 2.7% year-over-year in May, above forecasts of 2.6%

- *Monthly Increase*: Core PCE rose 0.2% in May, above expectations of 0.1%

- *Headline PCE Inflation*: Increased 2.3% year-over-year in May, in line with expectations

- *Monthly Headline Increase*: PCE Price Index rose 0.1% in May, matching forecasts

The data has implications for the Federal Reserve's decision on interest rates. Markets currently expect an 18% chance of a rate cut in July and a 70% probability of a cut in September.