US PCE Prices Rise as Expected
The US Personal Consumption Expenditures (PCE) price index rose by 0.1% month-over-month in April 2025, following a flat reading in March, matching market expectations.
Prices for goods were up 0.1% after a 0.5% fall and prices for services went up 0.1%, easing from a 0.2% rise. The core PCE index, which excludes volatile food and energy prices, also rose by 0.1% after an upwardly revised 0.1% in the previous month, in line with forecasts.
Separately, food prices declined 0.3% after a 0.5% gain while prices for energy goods and services went up 0.5% after dropping 2.7%. On a year-over-year basis, headline PCE inflation eased for a second consecutive month, reaching 2.1%, the lowest level in seven months, down from 2.3% in March and below forecasts of 2.2%.
Similarly, core PCE inflation declined to 2.5%, its lowest since March 2021, from an upwardly revised 2.7% previously, also in line with expectations. The PCE index is the Federal Reserve’s preferred gauge of inflation.
Source: Trading Economics
