Federal Reserve’s Preferred Inflation Gauge Rises, Fueled by Higher Energy Prices

The Federal Reserve’s preferred inflation gauge rose in April, highlighting persistent price pressures throughout the U.S. economy, suggesting that the progress on inflation has stalled. The personal consumption expenditures (PCE) price index jumped 0.3 percent in April, unchanged from the previous month, according to the Bureau of Economic Analysis (BEA). This was in line with market expectations. Within the PCE report, goods prices rose 0.2 percent, and prices for services swelled 0.3 percent. Food costs slipped 0.2 percent, while energy prices popped 1.2 percent. On an annualized basis, PCE inflation was flat at 2.7 percent. Core PCE, which strips the volatile energy and food components, edged up 0.2 percent, down from the 0.3 percent increase in March. This was also slightly below the consensus estimate of 0.3 percent and represented the softest print since November....