Core inflation hit an annual rate of 3.3% in April, as expected, Fed’s preferred gauge shows
CNBC • • general
Key Points:
- Inflation in April showed a 0.4% monthly increase in the personal consumption expenditures (PCE) price index, with a 12-month inflation rate of 3.8%, aligning with economists' expectations.
- Core PCE prices, excluding food and energy, rose 0.2% monthly and 3.3% annually, indicating some easing in inflationary pressures compared to previous months.
- First-quarter GDP growth was revised down to an annualized rate of 1.6%, below the initial 2% estimate, due to lower consumer spending and investment figures.
- Consumer spending rose 0.5% in April as expected, while income remained flat, missing forecasts for a 0.4% increase.
- Market expectations suggest the Federal Reserve will likely hold interest rates steady until late 2026, with potential rate hikes anticipated in early 2027 amid ongoing inflation concerns influenced by geopolitical tensions and tariffs.