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