Excluding the more volatile categories of food and energy, the core PCE price index slowed for the month, rising 0.2% as compared to a 0.3% gain in March.
On an annual basis, the core PCE price index held steady at 2.8%.
Forecasts called for the monthly and annual increases in the overall and core index to be unchanged from March, according to FactSet consensus estimates.
While the overall PCE price index is technically used as the Fed’s target rate, the core index has received more attention from Fed officials because it provides a clearer lens into how underlying inflation is behaving.
Consumer spending also cooled for the month, rising just 0.2% as compared to the 0.7% increase recorded for March.
Organizations:
CNN, Inflation, Federal Reserve, Fed, Commerce Department