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Heather Long reports that PCE inflation increased to 4.1 percent year over year in May, marking the highest inflation level in 3 years.
She also notes that core PCE inflation, which excludes food and energy, rose to 3.4 percent, its highest since fall 2023. Long attributes the surge largely to the impact of the war in Iran, stressing the situation is especially painful for the middle class.
In April, Long reported that PCE inflation climbed to 3.8 percent, then the highest reading since May 2023. Core PCE stood at 3.3 percent that month. She also recently noted that U.S. job openings outnumbered unemployed workers for the first time since June 2025.