U.S. PCE inflation rises at fastest pace in three years in April — SkimNews
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- U.S. personal consumption expenditures price index rose 3.8% year‑over‑year in April, the fastest increase since May 2023, with a 0.4% month‑on‑month gain.
- Retail gasoline price in the United States surged 12.3% in April, part of a >50% rise since the Iran‑related war began at the end of February.
- Federal Reserve is expected to keep its benchmark rate in the 3.50‑3.75% range through 2027, as the central bank monitors the PCE inflation metric that hit 3.8% YoY.
- President Donald Trump saw his approval rating tumble to near its lowest since returning to the White House, according to a Reuters/Ipsos poll, as inflation and higher import duties erode his anti‑inflation credentials.
- Consumer spending grew 0.5% in April after a 1.0% jump in March, yet economists warn that rising prices outpacing wages and the end of tax refunds could curb future spending.
Why it matters: Higher inflation erodes purchasing power for U.S. households, especially low‑income families relying on tax refunds, while the Fed’s likely rate‑hold stance keeps borrowing costs elevated for businesses and homebuyers.
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