The Commerce Department reported on Thursday that the Federal Reserve’s preferred inflation measure rose to an annual rate of 3.8 percent in April. The reading marks the third straight month of increases and remains well above the central bank’s 2 percent target.
Personal consumption expenditures inflation climbed from 2.8 percent in February to 3.5 percent in March before reaching 3.8 percent in April. Core PCE, which excludes food and energy, advanced to 3.3 percent, its highest level since the end of 2023. The personal savings rate fell to 2.6 percent from 3.6 percent in March.
