The latest PCE data reveals a sharp rise. May’s headline PCE climbed to 4.1%, the highest since 2021. The core reading landed at 3.4%, up from April. Both numbers came in well above forecasts.
Consumer spending remained strong last month. Officials now face fresh pressure to keep rates high. The data could force the Fed to hold off on 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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