PCE May 2025:

The prices that consumers pay increased slightly in May, while the annual inflation rate is away from the Federal Reserve goal, according to the Ministry of Commerce report on Friday.

the Personal consumption expenses indexThe initial inflation reading at the Federal Reserve increased, by 0.1 %, average this month, which put the annual inflation rate by 2.3 %. The economists surveyed by Dow Jones were looking for related levels of 0.1 % and 2.3 %.

With the exception of food and energy, the basic PCE has published all readings of 0.2 % and 2.7 %, compared to 0.1 % and 2.6 % estimates. Federal politicians who consider CORE are a better measure of long -term trends due to historical fluctuations in the two categories. The annual average was 0.1 percentage points before reading April.

The Federal Reserve targets inflation by 2 %, a level in which it has not been since early 2021.

Along with inflation numbers, consumer spending and income showed additional signs of weakness. The spending decreased by 0.1 % for this month, compared to an estimate of 0.1 %. Personal income decreased by 0.4 %, compared to expectations to achieve 0.3 % gains.

The markets had a little reaction to the data, with Futures in the stock market This indicates a positive opening in Wall Street, while the treasury returns also increased.

“This morning news was consistent with other reports that show that the economy is gradually losing momentum in the second quarter, before the burden of increasing customs tariffs that are expected to wash on the beach during the summer and early autumn,” said Gary Shalosburg, a market expert at the Wales Vargo Institute for Investment.

The report with the Federal Reserve is considering its next step in interest rates. Shalosburg said the report helps “keep hope alive” to reduce the interest rate, although he still sees recently as “premature.”

The markets greatly expect the central bank to remain suspended in its meeting in late July. However, a few officials recently were defending a reduction as long as inflation data shows silent pressure from the head of the definitions Donald Trump Since his assumption of office in January.

Trump was pushing the Federal Reserve to alleviate, insist that inflation is low and the central bank can always switch gears if prices began to rise again.

Federal Reserve Chair Jerome PowellNevertheless, he called for a more cautious approach, despite the increasingly aggressive pressure of the president. Trump was criticizing Powell regularly, earlier this week, described as “stupid” and indicated that he would be called a successor soon.

The pressure of inflation was generally kept in May.

Food prices have increased by 0.2 %, but this was compensated by a 1 % decrease in the costs of goods and energy -related services, including a 2.2 % slide in gasoline and other energy commodities. Shelter prices increased by 0.3 %.

Services prices were responsible for most of the upward pressure on inflation, as it recorded an increase of 3.4 % over last year. The goods rose only 0.1 %.