personal consumption expenditures price index
Coverage of personal consumption expenditures price index in the Nexus archive.
- Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows
The core inflation rate rose to 3.4% in May, marking the highest level since October 2023, according to the Federal Reserve’s preferred measure. The personal consumption expenditures price index was projected to show a 4.1% annual increase.
- Asian shares are mixed and US futures fall as Iran talks make progress
Asian stocks were mixed with Japan and South Korea trading higher, while US futures fell amid progress in U.S.-Iran negotiations. Oil prices dropped as optimism grew over potential peace talks, though risks of Middle East tensions persist. Key AI-focused companies in Japan and South Korea saw significant gains.
- Americans are spending faster than their income is growing
Americans are spending faster than their income is growing, with the personal saving rate falling to 2.6% in April, its lowest since mid-2022. Rising energy costs from the Iran war and stagnant incomes are driving households to draw down savings, raising concerns about a potential pullback in consumer spending and economic growth.
- Fed’s preferred inflation gauge worsens as Iran war sends food, energy prices surging
The Fed's preferred inflation gauge, the personal consumption expenditures price index, rose 3.8% in the 12 months through April, marking the largest increase since May 2023. The surge in inflation is attributed to the Iran war driving up food and energy prices.
- The first inflation report under new Fed chief Warsh isn't good
The first inflation report under new Federal Reserve Chair Warsh shows a rise in the personal consumption expenditures price index, driven by higher energy costs. The Fed's preferred inflation gauge indicates worsening economic conditions.