Inflation rose about as expected in April, with markets on edge over when interest rates might start coming down, according to a measure released Friday that is followed closely by the Federal Reserve.
Including the volatile food and energy category, PCE inflation was at 2.7% on an annual basis and 0.3% from a month ago.
Goods prices rose 0.2% while services saw a 0.3% increase, continuing a normalization trend for an economy in which services and consumption provide much of the fuel.
Personal income increased 0.3% on the month, matching the estimate, while spending rose just 0.2%, below the 0.4% estimate and off March's downwardly revised 0.7%.
"The PCE Price Index didn't show much progress on inflation, but it didn't show any backsliding, either.
Persons:
Dow Jones, Dan North, Jerome, Powell, I'm, Chris Larkin, Morgan Stanley, John Williams
Organizations:
Federal Reserve, Commerce Department, Labor Department, The Commerce Department, North America, Allianz Trade, Treasury, New York Fed