Easing inflation gauge reveals lower-than-expected price growth
Friday, May 30, 2025, 8:21 am
Two separate reports indicate that the U.S. inflation rate eased in April, with the Personal Consumption Expenditures index showing a slightly lower-than-forecast reading. Analysts suggest these moderated numbers could influence future Fed policy decisions amid ongoing inflation concerns.
The Fed's preferred inflation gauge, the PCE index, showed that price growth eased in April as inflation numbers trended closer to the central bank's target.
Economists and some business executives have warned that prices will likely head higher as Trump’s widespread tariffs take effect, though the timing and impact of those duties are now in doubt after they were struck down in court.
The personal consumption expenditures price index was expected to show a 2.2% annual rate in April.
New economic data released on Friday showed higher U.S. personal income, a softening of inflation and lower trade deficits. CBS News MoneyWatch correspondent Kelly O'Grady has the details.
Consumer spending slowed despite rising incomes, potentially an early reaction to higher prices on some imported goods.
U.S. consumer sentiment improved slightly in May, according to new data from the University of Michigan. CBS News' MoneyWatch correspondent Kelly O'Grady has the latest.
US Consumer Spending Growth Slows While Inflation Remains Soft Bloomberg.com
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