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The Federal Reserve’s Preferred Inflation Index Falls Short of Expectations in April
image 30 May، 2025
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Data released just moments ago from the U.S. Bureau of Economic Analysis showed that U.S. personal income rose by $210.1 billion in April, up 0.8% from 0.5% in March. The Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation measure, rose by 0.2% to $47.8 billion, compared to March’s reading of 0.7%.
The PCE rose by 2.1% year-over-year, compared to 2.3% in March (expectations were 2.2%), marking its lowest level since September of last year.
The core CPI, which excludes food and energy prices and is closely monitored by the Federal Reserve, rose by 0.1% in April after failing to grow in March, matching expectations. The PCE rose to 2.5% year-over-year, compared to 2.6% in March, falling short of expectations.

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