#USCorePCEMay

The Core PCE (Personal Consumption Expenditures Price Index excluding food and energy) is the preferred inflation indicator of the Federal Reserve of the United States.

It measures the change in prices of goods and services excluding food and energy, which tend to be more volatile.

Its importance lies in that it better reflects long-term inflationary trends and helps the Fed decide whether to raise or lower interest rates.

In May 2025, the Core PCE rose by 2.7% year-on-year, surpassing expectations of 2.6%. On a monthly basis, it increased by 0.2%, also above the predicted 0.1%.

This uptick has raised doubts about whether the Fed will cut interest rates soon, as inflation continues to show resilience in declining.

Image taken from the web