The latest PCE data reveals a sharp rise. May’s headline PCE climbed to 4.1%, the highest in 2021. The core reading hit 3.4%, up from last month. Both numbers were well above forecasts.
Consumer spending remained strong last month. Officials now face fresh pressure to maintain rates high. The data could lead the Fed to hold off on planned cuts. Oil prices eased but did not slow the gains.
Core inflation rate hit 3.4% in May, highest since October 2023, Fed's preferred gauge shows CNBC
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