United States inflation gauge hits three-year high
Tap title to read story
The United States Commerce Department reported Thursday that the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures price index, rose 4.1 percent year-over-year, its highest level in three years and up from 3.8 percent the previous month. On a monthly basis, PCE increased 0.4 percent, matching the prior month but below an earlier 0.7 percent gain. Higher retail gasoline prices, driven by earlier disruptions near the Strait of Hormuz, and rising costs for specialized semiconductors and AI-related computer equipment were key contributors. Persistently elevated inflation has led the Federal Reserve to keep its benchmark interest rate unchanged this year, reversing January expectations for two cuts.
More context
Timeline
- April 2023 PCE last reached comparable level
- January Federal Reserve projected two rate cuts
- Earlier this year PCE rose 0.7 percent monthly
- Earlier this month United States, Iran sign peace
- Earlier this month Strait of Hormuz disruptions ease
- Thursday PCE inflation rises to 4.1 percent
- Thursday national gasoline price averages $3.92
- This year Federal Reserve holds benchmark rate
Why it matters
Higher inflation means your dollar doesn't stretch as far. Gasoline and tech prices are up, impacting your daily commute and home office. Check your budget and consider ways to cut back on non-essential expenses.
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
