Breaking: US annual Core PCE inflation rises to 3.4% in May as expected

FXStreet Team FXStreet

Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, was 0.4% in May, the US Bureau of Economic Analysis reported on Friday. On a yearly basis, the PCE Price Index edged higher to 3.9% from 3.6%, compared to analysts' estimate of 4%.

More importantly, the annual Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, rose to 3.4% in May, matching the market consensus.

Further details of the publication revealed that the Personal Income declined by 2% in the same period while Personal Spending remained unchanged on a monthly basis.

Market reaction

With the initial reaction, the greenback started to weaken against its rivals and the US Dollar Index was last seen losing 0.22% on the day at 91.60.

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