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