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Heather Long reports that U.S. PCE inflation climbed to 3.8 percent in April, marking the highest rate in three years, since May 2023. Core PCE inflation, which excludes food and energy, increased to 3.3 percent, reaching its highest level since fall 2023.
According to Long, the monthly PCE gain was 0.4 percent, while core PCE rose by 0.2 percent. These increases were slightly below expectations.
Earlier this year, Heather Long reported that the Federal Reserve held interest rates steady in an 8-4 decision, the most divided vote since 1992. In March, Long also noted that the U.S. hiring rate climbed to 3.5 percent, marking the highest level in nearly two years. These developments provide context for recent inflation readings.