The Federal Reserve's primary inflation gauge, the Personal Consumption Expenditures price index, reached 4.1% in May. This figure represents the most significant year-over-year increase since April 2023, signaling persistent price pressures across the United States economy.
Core PCE inflation, which excludes volatile food and energy costs, climbed to 3.4% during the same period. This reading marks the highest level for the core metric since October 2023. Current data indicates that headline inflation is now trending at more than twice the Federal Reserve's established long-term target of 2.0%.