Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

[Zincwarrior]

Core inflation hit the highest number since 2023. Thats dollars that we can't get back.​

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows​

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

The personal consumption expenditures price index was expected to show a 4.1% annual increase.

www.cnbc.com

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

The Federal Reserve’s primary price gauge rose at its highest level since 2023, reinforcing the central bank’s recent tough talk on inflation.

Excluding food and energy, the personal consumption expenditures price index showed a 3.4% annual rate after rising 0.3% for the month, both in line with Dow Jones consensus. The core reading was the highest since October 2023.


For the all-items reading, the PCE index showed inflation running at a seasonally adjusted 4.1% annual rate, the highest since April 2023, according to a Commerce Department report Thursday. On a monthly basis, PCE accelerated 0.4%. The annual level was in line with the Dow Jones consensus estimate while the monthly reading was 0.1 percentage point below.

While Fed officials look at both headline and core rates, they generally consider the latter a better measure of long-run trends, particularly in light of this year’s inflation surge that was driven largely by an acceleration in energy prices tied to the Iran war that have slowly been seeping into other parts of the economy.

Even with the elevated inflation levels, consumer spending for the month came in stronger than expected.

Personal consumption expenditures, a proxy for spending, rose 0.7% for the month, 0.1 percentage point above the forecast and ahead of the inflation rate. Personal income also rose 0.7%, well above the 0.4% forecast. The personal saving rate rose to 3%.

 

[Rambunctious]

Highest since Biden.... so still lower than under Biden....

 

[1srelluc]

Meh, is that all?

 

[Moonglow]

I am sure Trump could do worse than he is already trying. I enjoy MAGGATs and their denial of anything Trump does to make it moar costly to live. The voters will remember.

 

[MisterBeale]

 

[1srelluc]

Inflation topped 4% in May, but the worst may be over​

MSN

Even CNN is not buying the OP's gloom & doom.

 

[1srelluc]

Yeah, the DOW really took it hard.

Of course it's hard to say what those drunks will do by the end of trading.

 

[Zincwarrior]

Yeah, the DOW really took it hard.

View attachment 1273145

Of course it's hard to say what those drunks will do by the end of trading.

You can't eat the stock market.

 

[1srelluc]

You can't eat the stock market.

I enjoyed a nicely marbled NY Strip the other day.....1.50# precooked weight. $20.00.

Being the frugal type I cut it in half and shared it with the wife. It was plenty with the fixins'.

BTW, I air-fried it. Damn it did a good job! I was amazed.

 

[Mashmont]

Core inflation hit the highest number since 2023. Thats dollars that we can't get back.​

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows​

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

The personal consumption expenditures price index was expected to show a 4.1% annual increase.

www.cnbc.com

Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows

The Federal Reserve’s primary price gauge rose at its highest level since 2023, reinforcing the central bank’s recent tough talk on inflation.

Excluding food and energy, the personal consumption expenditures price index showed a 3.4% annual rate after rising 0.3% for the month, both in line with Dow Jones consensus. The core reading was the highest since October 2023.


For the all-items reading, the PCE index showed inflation running at a seasonally adjusted 4.1% annual rate, the highest since April 2023, according to a Commerce Department report Thursday. On a monthly basis, PCE accelerated 0.4%. The annual level was in line with the Dow Jones consensus estimate while the monthly reading was 0.1 percentage point below.

While Fed officials look at both headline and core rates, they generally consider the latter a better measure of long-run trends, particularly in light of this year’s inflation surge that was driven largely by an acceleration in energy prices tied to the Iran war that have slowly been seeping into other parts of the economy.

Even with the elevated inflation levels, consumer spending for the month came in stronger than expected.

Personal consumption expenditures, a proxy for spending, rose 0.7% for the month, 0.1 percentage point above the forecast and ahead of the inflation rate. Personal income also rose 0.7%, well above the 0.4% forecast. The personal saving rate rose to 3%.

Wow. That's the highest since Biden. Although core inflation doesn't include the price of gasoline, the price does influence the CIR over time, and now that gasoline prices are tumbling, look for the CIR to do likewise.

 

[Mashmont]

Yeah, the DOW really took it hard.

View attachment 1273145

Of course it's hard to say what those drunks will do by the end of trading.

159th record DJIA high for the great man. By far the most in history.

 

[Thinker101]

You can't eat the stock market.

WTF, that's the dumbest post I've seen this week. You may not be able to eat the stock market, but you can go just about anywhere to eat because of the stock market.

 

[Correll]

You can't eat the stock market.

You do if you are one of the millions that have roth iras.

 

[1srelluc]

You do if you are one of the millions that have roth iras.

Hush, keep him poor.

 

[0311]

The increase was largely driven by more expensive gas, as well as pricier semiconductors and other computer equipment that are in high demand for the AI buildout.

Key Inflation Gauge Jumps To 3-Year High

The increase was largely driven by more expensive gas, as well as pricier semiconductors and other computer equipment that are in high demand for the AI buildout.

www.huffpost.com

WASHINGTON (AP) — The Federal Reserve’s preferred inflation gauge rose to a new three-year high in May as gas prices peaked, a sign rising costs could pose political problems for President Donald Trump and his political party as midterm elections near.
Consumer prices rose 4.1% in May from a year earlier, the Commerce Department said Thursday, the largest annual increase since April 2023. On a monthly basis, inflation was 0.4% last month, matching April’s increase and down from 0.7% in March.

The increase was largely driven by more expensive gas, as well as pricier semiconductors and other computer equipment that are in high demand for the AI buildout. Rising prices have caused the inflation-fighters at the Federal Reserve to keep their key rate unchanged this year, a reversal from January when they had penciled in two cuts. Some economists forecast the central bank could lift rates this year instead.

Trump continues to destroy our economy. High tariffs, (paid U.S. Consumers), high gas prices, high food prices. Consumer confidence is way down. He is doing to our economy exactly what he did in first term, cratering it.

 

[Eman623]

What's the left's plan to make stuff more affordable?

 

[Concerned American]

Meh, is that all?

Meanwhile in WA, democrat annual fuel tax increase of 1+% (6 cents/gal) is set to take effect July 1.

 

[Concerned American]

I enjoyed a nicely marbled NY Strip the other day.....1.50# precooked weight. $20.00.

Being the frugal type I cut it in half and shared it with the wife. It was plenty with the fixins'.

BTW, I air-fried it. Damn it did a good job! I was amazed.

Yeah, I had a prime filet on Sunday that we did in the air fryer---damn, that was a good steak. I love that air fryer.

 

[OhPleaseJustQuit]

What's the left's plan to make stuff more affordable?

.

Make it free.

.

 

[Eman623]

.

Make it free.

.

How?