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