US: Annual core-PCE price index meets expectations with 1.8% in April
|According to the latest report published by the US Bureau of Economic Analysis, the annual core-PCE price index, the Federal Reserve's preferred measure of inflation, came in at 1.8% in April to meet the market expectations. Below are some key takeaways from the official press release.
- Personal income increased $49.5 billion (0.3 percent) in April.
- Disposable personal income (DPI) increased $60.9 billion (0.4 percent) and personal consumption expenditures (PCE) increased $79.8 billion (0.6 percent).
- Real DPI increased 0.2 percent in April and Real PCE increased 0.4 percent.
- The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
- The $42.8 billion increase in real PCE in April reflected an increase of $15.4 billion in spending for goods and a $27.5 billion increase in spending for services.
- Within goods, spending for gasoline and other energy goods was a leading contributor to the increase.
- Within services, the largest contributor to the increase was spending for household utilities.
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