Apr. Inflation Milder Than Expected
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Consumer spending slowed despite rising incomes, potentially an early reaction to higher prices on some imported goods.
Economists had expected the personal consumption expenditures index to tick down slightly to 2.2% from the month before.
The Fed’s preferred gauge of consumer prices ticked up just slightly in April, a modest increase that lowered the 12-month inflation rate.
Don't pop open the bubbly yet. The PCE index released Friday shows inflation easing to 2.1% annually in April, its lowest reading of the year. But it will likely reaccelerate for the remainder of 2025,
U.S. inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March,
Friday brings another glimpse into how much of an issue inflation is in the U.S. economy. The PCE price index is expected to tick up 0.1% M/M in April vs. flat in March, according to the consensus of economists.