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• PCE rose just 0.2%, falling from March’s 0.9% increase
The core personal consumption expenditures (PCE) price index was reported as 4.9% from a year ago in April, according to the Bureau of Economic Analysis.
This figure, excluding food and energy, has grown at the fastest pace in 40 years, but reflected a slowing pace from the 5.2% reported in March, said the Commerce Department.
Including food and energy, headline PCE increased 6.3% in April from a year ago, decelerating from the 6.6% rate in March.
Other important indicators
Energy prices jumped 30.4% for the year ended in April — while food inflation rose 10% over the same period.
On a monthly basis, the core PCE increased, which excludes food and energy, rose 0.3%. Including food and energy, the prices rose by 0.2%, less than the figure of 0.9% in the previous months.
This measure is closely tracked by the Federal Reserve and fuels concerns surrounding price rise.
PCE index measures price changes in consumer goods and services, excluding food and energy, in the U.S. economy. It has been the primary inflation index used by the US Federal Reserve when making monetary policy decisions, since 2012.
Despite that, rising inflation has prompted workers to ask for higher pay and businesses to charge higher prices, potentially making it harder for the Fed to reverse the tide.
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Source: Commerce Department