A key economic measure from the Federal Reserve showed on Friday that inflation fell to its lowest annual level in more than three years in May.
According to a Commerce Department report, the core price index for personal consumption expenditures rose just 0.1% on a seasonally adjusted basis this month, 2.6% higher than a year ago, with the latter figure 0.2 percentage points lower than April’s level.
Both figures were in line with Dow Jones estimates. May marked the lowest annual rate since March 2021, marking the first time this economic cycle that inflation exceeded the Federal Reserve’s 2% target.
Including food and energy, headline inflation remained flat over the month and also rose 2.6% on an annual basis. These measured values also corresponded to expectations.
Excluding the inflation numbers, the Bureau of Economic Analysis report showed personal income rose 0.5% month-on-month, higher than the 0.4% estimate. However, consumer spending rose 0.2%, weaker than the 0.3% forecast.
This is breaking news. Please check back for updates.
Source link
2024-06-28 12:41:15
www.cnbc.com
