- June 25, 2021
- Posted by: Stratford Team
- Category: Business
Thru the Cycle President John Lonski on inflation concerns and the impact of the biggest surge in consumer spending in decades.
Core personal consumption expenditures, the Federal Reserve’s preferred inflation reading, rose in May by the most in nearly three decades as the U.S. economy continued to gain momentum while COVID-19 lockdown restrictions eased.
Core PCE, which excludes food and energy, jumped 3.4% annually, up from the 3.1% increase in April, the Bureau of Economic Analysis said. The reading was the strongest since April 1992. Prices rose 0.5% on a monthly basis, slowing slightly from April’s 0.7% gain.
Analysts surveyed by Refinitiv were expecting a 3.4% annual increase and 0.6% monthly gain.
Overall, personal consumption expenditures rose 3.9% year over year and 0.4% from April.
“We don’t believe that this data will impact the Fed’s current plans for reducing extraordinary stimulus (i.e. “tapering”) and rate hikes,” said…