According to data from the Bureau of Economic Analysis, the personal consumption expenditures (PCE) price index came in 2.7% in April, unchanged from March, as expected.
Stripping out volatile items like food and fuel, the year-on-year “core” gauge matched the prior month’s mark of 2.8%, again as expected.
There was a slight variance from expectations in the month-on-month figures, with the headline release coming in at 0.3%, in line with March, while the “core” monthly figure increased by 0.2%, below the 0.3% expected.
The data may come as something of a relief as markets were becoming resigned to the higher-for-longer interest rate narrative after last week’s Fed minutes, along with cautious sounding remarks from policymakers who expressed doubt whether inflation is indeed on a sustainable downward trajectory to its stated 2% target level.
Additionally, the numbers come after U.S. economic growth was revised lower in the first quarter, adding to the uncertainty over when the Federal Reserve would start cutting interest rates from more than two-decade highs.
Source: Economy - investing.com
