#USCorePCEMay

Core inflation rate rose to 2.7% in May, more than expected, Fed’s preferred gauge shows

Key Points

The personal consumption expenditures price index, the Fed’s primary inflation reading, rose a seasonally adjusted 0.1% for the month, putting the annual inflation rate at 2.3%.

Excluding food and energy, core PCE posted respective readings of 0.2% and 2.7%, compared with estimates for 0.1% and 2.6%.

Consumer spending and income showed further signs of weakening. Spending fell 0.1% for the month, while personal income declined 0.4%.