May PCE Core Inflation Climbs to 3.4%, Keeping Fed on Inflation Watch
TL;DR
The May 2026 PCE report shows the Fed’s preferred core inflation at 3.4% year-over-year (up 0.3% for May) and all-items inflation at 4.1% (up 0.4% for the month), with consumer spending rising 0.7% and personal income up 0.7%. GDP grew at a 2.1% annualized rate in Q1, while initial jobless claims fell to 215,000. The data underscore persistent inflation pressures even as growth remains solid, reinforcing the Fed’s cautious-to-hawkish stance on policy.
- Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows CNBC
- US Inflation Climbs to Three-Year High, Spending Picks Up Bloomberg
- The Fed's preferred inflation gauge shows prices rising at fastest pace in 3 years CBS News
- PCE data and June jobs report headline a data-heavy two weeks Kraken Blog
- Inflation tops 4% for first time in three years CNN
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