The Federal Reserve’s preferred inflation measure rose in May, a reading that could influence the U.S. central bank’s timing of interest rate cuts.
New Bureau of Economic Analysis data, released on June 27, show that inflation in the personal consumption expenditures (PCE) price index ticked up to 2.3 percent last month from an upwardly revised 2.2 percent in April.
From April to May, the PCE price index edged up by 0.1 percent.
Both readings were in line with economists’ expectations.
Core PCE inflation, which strips out the volatile energy and food components, jumped to 2.7 percent in the 12 months ending in May, higher than the consensus forecast of 2.6 percent. April core PCE inflation was adjusted slightly higher to 2.6 percent….