May core PCE: smallest increase in six months

30 June 2023

 

Summary: US core PCE price index up 0.3% in May, less than expected; annual rate slows from 4.7% to 4.6%; ANZ: smallest monthly increase in six months; short-term Treasury yields rise; Fed rate-cut expectations for 2024 firm. One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at the time of 2.0% in mid-2018,...

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