DOW JONES–Inflationary pressures in the US increased as expected in April, with monthly rates coming in slightly lower than expected. As the Bureau of Economic Analyzes (Bea) announced, the price index for personal consumption expenditure (PCE deflator) rose by 0.4 percent compared to the previous month and was 3.8 (March: 3.5) percent above the level of the same month last year. Economists surveyed by Dow Jones Newswires had forecast rates of 0.5 and 3.8 percent. The core PCE deflator (excluding energy and food), the Fed’s preferred measure of inflation, increased by 0.2 and 3.3 (3.2 percent). 0.3 and 3.3 percent were expected. The Fed aims for an inflation rate of 2 percent.
PCE data is often close to expectations because economists can use other official data released earlier in the month to predict the value with great accuracy. Still, a series of supply shocks that have hit the U.S. economy in recent years have presented policymakers with a more complex scenario: tackling higher inflation without slowing overall economic growth.
The Bea report also showed that consumer spending rose 0.5 percent last month. This was in line with the expectations of economists surveyed by Dow Jones. Personal income remained unchanged, compared to the forecast of plus 0.4 percent.
(Collaboration: Jessica Coacci)
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(END) Dow Jones Newswires
May 28, 2026 09:23 ET (13:23 GMT)