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

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Source: CNBC

Published Fri, Jun 27 2025 8:35 AM EDT | Updated 6 Min Ago


Prices that consumers pay rose slightly in May, while the annual inflation rate edged further away from the Federal Reserve’s target, according to a Commerce Department report Friday.

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%. Economists surveyed by Dow Jones had been looking for respective levels of 0.1% and 2.3%.

Excluding food and energy, core PCE posted respective readings of 0.2% and 2.7%, compared to estimates for 0.1% and 2.6%. Fed policymakers consider core to be a better measure of long-term trends because of historic volatility in the two categories. The annual rate was 0.1 percentage point ahead of the April reading.

Along with the inflation numbers, consumer spending and income showed further signs of weakening. Spending fell 0.1% for the month, compared to the estimate for an increase of 0.1%. Personal income declined 0.4%, against the forecast for a gain of 0.3%.

Read more: https://www.cnbc.com/2025/06/27/pce-inflation-report-may-2025-.html

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Source - https://www.bea.gov/news/2025/personal-income-and-outlays-may-2025


Article updated.

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Published Fri, Jun 27 2025 8:35 AM EDT | Updated 3 Min Ago


Prices that consumers pay rose slightly in May, while the annual inflation rate moved further away from the Federal Reserve's target, according to a Commerce Department report Friday.

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%. Economists surveyed by Dow Jones had been looking for respective levels of 0.1% and 2.3%.

Excluding food and energy, core PCE posted respective readings of 0.2% and 2.7%, compared to estimates for 0.1% and 2.6%. Fed policymakers consider core to be a better measure of long-term trends because of historic volatility in the two categories.

This is breaking news. Please refresh for updates.

Original article -

Published Fri, Jun 27 20258:35 AM EDT Updated 2 Min Ago


Prices that consumers pay rose slightly in May, while the annual inflation rate moved further away from the Federal Reserve's target, according to a Commerce Department report Friday.

This is breaking news. Please refresh for updates.