In May, US inflation measured by the core component of the PCE index rose by 0.5% on a monthly basis, less than the + 0.6% expected by the consensus. On an annual basis, the figure jumped by 3.4%, as expected, against the + 3.9% of the general PCE index, again on an annual basis (which includes the volatile components of energy and food prices) .
The rise in the PCE core index on an annual basis, equal to + 3.4%, is the strongest in about 30 years, exactly since the early 1990s. The jump in the general PCE index is also the most sustained since 2008 (+ 0.4% on a monthly basis).
The numbers relating to inflation emerged with the data relating to personal income and consumer spending.
Consumer spending remained unchanged on a monthly basis, making it worse than the expected + 0.4% increase. Income was negative, falling by 2%, less than the 2.5% decline estimated by the consensus.