Up 2.6% Compared to the Same Month Last Year... Market Consensus Level
The U.S. core Personal Consumption Expenditures (PCE) price index for May met market expectations.
According to the U.S. Department of Commerce's Bureau of Economic Analysis on the 28th (local time), the core PCE price index for May rose 2.6% year-over-year and 0.1% month-over-month. This matched the expert forecasts compiled by Dow Jones.
The PCE price index including food and energy also remained flat compared to the previous month, aligning with Wall Street's expectation of 0%. It increased 2.6% year-over-year, which was also in line with market expectations.
In May, personal income increased by 0.5%, and personal consumer spending rose by 0.2% month-over-month. The increase in personal consumer spending was mainly contributed by healthcare (hospitals), housing and utilities (housing), and transportation services (air transportation).
The PCE price index measures the prices paid by U.S. residents when purchasing goods and services. It helps in economic forecasting by indicating whether national spending has increased or decreased over a specific period. The U.S. Federal Reserve (Fed) uses the core PCE, which excludes food and energy, as a key indicator when deciding on the benchmark interest rate.
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