The personal consumption expenditure (PCE) price index, which the Fed considers an inflation indicator, fell to 6.3 percent in April
The personal consumption expenditure (PCE) price index, which the Fed considers as an inflation indicator, fell to 6.3 percent in April from 6.6 percent in March, in line with expectations.
According to data released by the U.S. Department of Commerce, the core PCE also fell to 4.9 percent from 5.2 percent, bringing a slight decline in the dollar index. The index, which saw a 20-year high of 105 in May, was at 101,686 as of 4:45 CET.
In this period, the monthly and annual increases in the core personal consumption expenditures price index followed a course in line with market expectations.
While the annual increase in the index fell to a 4-month low, it was interpreted as a sign that price increases could slow down. Analysts said the rise in personal consumption spending showed that consumption remained strong despite rising prices.
Personal incomes below expectations
Personal income rose 0.4 percent in April, falling short of expectations. Americans’ personal incomes, which rose less than market expectations, were projected to increase by 0.5 percent during this period, as in March.
Personal consumption expenditures increased by 0.9 percent month-on-month in April. Personal consumption expenditures, which exceeded market expectations, were forecast to increase by 0.7 percent during this period. The increase in personal consumption expenditures was 1.4 percent in March.
