US PCE Inflation Hits 3.8 Percent in April
The personal consumption expenditures price index rose 3.8% in the 12 months through April, driven by higher energy costs and supply chain disruptions. This data suggests the Federal Reserve may maintain current interest rates into next year as core inflation remains elevated at 3.3%.
The United States PCE price index rose 3.8% year-on-year in April, the fastest inflation pace in three years. This jump from 3.5% in March matched Reuters poll forecasts and reflects a 0.4% monthly increase. High inflation likely forces the Federal Reserve to maintain interest rates between 3.50% and 3.75% into 2027.
The Commerce Department's Bureau of Economic Analysis reported the 3.8% rise on Thursday. Energy prices drove the acceleration amid the ongoing war in the Middle East.
