ZCZC
BCN-46
US-ECONOMY-INFLATION
Key US PCE inflation measure holds steady at 2% in April
WASHINGTON, May 31, 2018 (BSS/AFP) – The US inflation measure most closely
watched by the Federal Reserve held steady at two percent in April, the
Commerce Department reported Monday.
However, the 12-month rate for the “core” Personal Consumption Expenditures
price index excluding volatile food and energy prices remained at 1.8
percent, according to the most recent data.
The Fed watches price measures closely to determine how fast to raise
interest rates, but has signaled that the two percent target is not a
ceiling, and it would be comfortable with inflation rising slightly above
that level for a time.
Inflation hit two percent in March for the first time in a year, after
staying stubbornly low despite solid economic growth and falling
unemployment.
The PCE price index ticked up 0.2 percent compared to March for the
headline and core rate.
Goods prices were 0.6 percent higher than April 2017, the strongest pace
since November, while services increase 2.6 percent.
Energy goods continue to see rising prices, and were 8.4 percent higher
than a year earlier.
Meanwhile, spending rose 0.6 percent in the month, slightly faster than in
the prior month, while income also ticked up 0.3 percent, according to the
report.
BSS/AFP/SR/2000 HRS