Key inflation measure rises by most in three years in April as gasoline prices spike
Higher gas and food costs pushed inflation to a three-year high, while inflation-adjusted incomes fell 0.1%, the Commerce Department said.
- On Thursday, the Commerce Department reported the Personal Consumption Expenditures Price Index rose 3.8% annually in April, the highest level since May 2023. Monthly prices increased 0.4%, reflecting sustained inflationary pressure.
- Higher energy costs driven by the Iran war and Strait of Hormuz shipping disruptions fueled the inflation surge. Gasoline prices increased more than 50% since the conflict began in late February, straining global supply chains.
- Consumers saw their personal saving rate drop to 2.6%, the lowest level since June 2022, as inflation eroded purchasing power. Core PCE rose 3.3% annually, indicating underlying price pressures remain elevated.
- Federal Reserve policymakers may forego interest rate cuts this year, with Chair Kevin Warsh indicating potential hikes if inflation does not abate. The central bank remains focused on its 2% target.
- Midterm elections in November face political pressure as first-quarter GDP growth was revised down to 1.6%. Persistent inflation continues to challenge President Donald Trump and congressional Republicans ahead of the vote.
164 Articles
164 Articles
Prices in the U.S. are rising at the fastest pace in years
A measure of inflation closely watched by the Federal Reserve accelerated in April to a three-year high, reinforcing the central bank’s budding support to consider raising interest rates if price pressures do not ease.
Prices in the US are rising at the fastest pace in years
A measure of inflation closely watched by the Federal Reserve accelerated in April to a three-year high, reinforcing the central bank’s budding support to consider raising interest rates if price pressures do not ease. The post Prices in the US are rising at the fastest pace in years appeared first on Hawaii Tribune-Herald.
Inflation Just Spiked to the Highest Level in Almost 3 Years in the First Report Under New Fed Chair Kevin Warsh. But There Was Some Good News
Key PointsThe personal consumption expenditures price index (PCE) is the Federal Reserve's preferred gauge of inflation.The PCE hit a three-year high of 3.8% in April, largely due to higher energy prices caused by the Iran war.However, the monthly increases came in softer than expected. The data had an interesting impact on the market's rate expectations.These 10 stocks could mint the next wave of millionaires › The Federal Reserve’s preferred g…
NYT: Consumer Prices Rising At Fastest Pace In Years
The New York Times reports: A measure of inflation closely watched by the Federal Reserve accelerated in April to a three-year high, reinforcing the central bank’s budding support to consider raising interest rates if price pressures do not ease. The Personal Consumption Expenditures index rose 3.8 percent from the same time last year. It was the fastest annual pace since May 2023, when the Fed was in the midst of raising rates to tame a burst o…
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