The Federal Reserve’s favorite inflation scale shows that consumer prices have been reduced in April

Federal reserve prefers Inflation scale It showed that the growth of prices has ended a little in April, as it is closer to the central bank’s goal, as economists warn of the impact of definitions on inflation in the coming months.

The Trade Administration stated on Friday that Personal consumption expenses (PCE) The index increased by 0.1 % on a monthly basis and 2.1 % on an annual basis – the slower growth rate since February 2021. These numbers were largely in line with the estimates of economists that LSEG monitored.

Core PCE, which excludes flying food and energy prices, increased by 0.1 % on a monthly basis in April and 2.5 % on an annual basis, in line with estimates.

Federal reserve policymakers focus on the main number of PCE as they try to slow the pace of prices to their 2 % goal, although they look at the basic data as a better indicator of inflation. The main title PCE fell from 2.3 % in March, while Core PCE also fell from 2.6 %.

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Goods prices It decreased by 0.4 % in April compared to last year, after a decrease of 0.3 % in March. The prices of durable goods decreased by 0.3 % in April on an annual basis, while the prices of non -applicable goods decreased by 0.4 %.

Service prices were 3.3 % higher in April than last year – the smallest increase since January.

The unemployed demands in the United States of the week are increasing more than expected, as the labor market is facilitated

Wages and salaries It increased by 0.5 % on a monthly basis, the same growth rate in the previous two months.

the Personal savings rate As a percentage of personal income available by 4.9 % year -based in April, an increase of 4.3 % per month.

The PCE report of the Ministry of Commerce comes at a time when market monitors are monitoring signs of enlargement led by the president Donald Trump Definitions.

the Federal Reserve He pointed out that he will wait for more inflation and labor market data before deciding to reduce interest rates, partly due to uncertainty about how definitions affect the economy.

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Economists who interact with PCE inflation data in April indicated that the price pressures caused by customs tariffs may cause high inflation data in the coming months.

“The markets may welcome moderate inflation data today, but we have to wait until next month to obtain a real feeling of how the definitions affect the economy,” said Eileen Zintner, the chief economic strategy of Morgan Stanley. “The question is not whether the definitions will have an effect, it is a question about the size of this effect.”

“The consumer spending data and its trade for April showed the impact of definitions, with a decrease in the trade deficit in records and consumer spending after the front loading in February and March,” Zinton added.

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Jeffrey Roche, chief economist at LPL Financial, pointed out that PCE data in April is “the slightest print of inflation we will likely see for the rest of the year,” adding that “prices will likely benefit in the coming months.”