The latest PCE data points to a sharp rise. May’s headline PCE surged to 4.1%, the highest since 2021. The core reading hit 3.4%, up from last month. Both numbers came in well above expectations.
Consumer spending stayed strong last month. Officials now see fresh pressure to maintain rates high. The data could push the Fed to postpone planned cuts. Oil prices eased 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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