Rising energy prices (up 0.7% month on month) helped push up the headline PCE index prices for goods and services increased 0.3% and 0.4%, respectively, while food prices showed a very slight decrease. The Personal Consumption Expenditures price index rose 4.4% for the 12 months ended in April, up from a 4.2% increase seen in March, according to data released Friday by the Commerce Department. The Federal Reserve’s preferred inflation gauge bounced higher in April, underscoring Fed Chair Jerome Powell’s warnings that reining in price hikes “is likely to be bumpy.” But with spending also heating up, Friday’s data from the Commerce Department kicked up the odds for further rate hikes.
The US economy has encountered some expected turbulence on inflation’s descent.
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