|
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.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
More from Eren Sengezer
