Core PCE Inflation Rises 0.2% in April, Matching Forecasts

The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 0.2% in April, meeting expectations. Annually, core PCE increased by 2.8%, slightly above estimates. Including food and energy, PCE inflation was 2.7% annually and 0.3% monthly, also in line with forecasts. This measure is favored over the consumer price index (CPI) due to its broader scope and ability to account for changes in consumer behavior. Despite the slight rise, Fed officials, including Chair Jerome Powell, are concerned about the persistent inflation range.