Data released just moments ago from the U.S. Bureau of Economic Analysis showed that U.S. personal income fell by $109.6 billion in May, a 0.4% decline from a revised 0.7% increase in April. The personal consumption expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation, fell by 0.1%, or $29.3 billion, from a revised 0.2% increase in April.
The closely watched index, which excludes food and energy prices, rose by 0.2% in May, compared to 0.1% in April, exceeding expectations. It rose to 2.7% year-on-year, compared to 2.6% in April, above expectations.