Inflation & Prices
US Inflation Picks Up, Keeping Fed Tilted Toward Another Hike
- PCE price index and core gauge both topped estimates in April
- Inflation-adjusted spending rose by most in three months
US inflation and consumer spending accelerated last month, highlighting steady price pressures and demand that will keep Federal Reserve policy makers tilted toward raising interest rates further.
The personal consumption expenditures price index and a core measure that excludes food and energy, the Fed’s preferred inflation gauges, both exceeded projections. The Commerce Department’s data also surprised with the strongest gain in household spending since the start of the year.