The Federal Reserve’s preferred inflation gauge rose more than expected in May and the annual rate climbed further above central bankers’ 2% goal, according to government data released Friday.
The personal consumption expenditures price index rose 0.1% for the month, pushing the annual inflation rate to 2.3%, according to the Bureau of Economic Analysis.
Core PCE, which excludes food and energy prices, increased 2.7% from the year before – above analysts’ expectations of a 2.6% rise.
This is generally considered a better indicator of long-term trends since it leaves out two particularly volatile categories.
The core figure rose 0.2% from the month before.
Consumer spending and personal income also weakened in May, according to Friday’s report.
Spending dipped 0.1% last month, below expectations of a 0.1% gain.
Personal income fell 0.4%, missing projections of a 0.3% rise.