Revenue Agenda
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
No Result
View All Result
Revenue Agenda
No Result
View All Result
Home Editor's Pick

The Fed’s preferred inflation measure rose 0.2% in April, as expected

by
June 1, 2024
in Editor's Pick
0
The Fed’s preferred inflation measure rose 0.2% in April, as expected
0
SHARES
6
VIEWS
Share on FacebookShare on Twitter

Inflation rose about as expected in April, with markets on edge over when interest rates might start coming down, according to a measure released Friday that is followed closely by the Federal Reserve.

The personal consumption expenditures price index excluding food and energy costs increased just 0.2% for the period, in line with the Dow Jones estimate, the Commerce Department reported.

On an annual basis, core PCE was up 2.8%, or 0.1 percentage point higher than the estimate.

Including the volatile food and energy category, PCE inflation was at 2.7% on an annual basis and 0.3% from a month ago. Those numbers were in line with forecasts.

Fed officials prefer the PCE reading over the more closely followed consumer price index, which the Labor Department compiles. The Commerce Department measure accounts for changes in consumer behavior such as substituting less expensive items for costlier alternatives, and has a wider scope than the CPI.

“The core index came in at 2.8%. That’s fine, but it’s been trading in a range for five months now, and that’s pretty sticky to me,” said Dan North, senior economist for North America at Allianz Trade. “If I’m [Fed Chair Jerome] Powell, I’d like to see that start moving down, and it’s barely creeping. … I’m not reaching for the Pepto yet, but I’m not feeling great. This is not what you want to see.”

A 1.2% rise in energy prices helped push up the headline increase. Food prices posted a 0.2% decline on the month.

Goods prices rose 0.2% while services saw a 0.3% increase, continuing a normalization trend for an economy in which services and consumption provide much of the fuel.

Along with the inflation reading, Friday’s release included data about income and spending.

Personal income increased 0.3% on the month, matching the estimate, while spending rose just 0.2%, below the 0.4% estimate and off March’s downwardly revised 0.7%. Adjusted for inflation, the spending numbers showed a 0.1% decline, due in large part to a 0.4% decrease in spending on goods and just a 0.1% rise in services expenditures.

Market reaction following the release saw futures tied to major stock averages rising while Treasury yields moved lower.

“The PCE Price Index didn’t show much progress on inflation, but it didn’t show any backsliding, either. Based on the initial reaction in stock index futures, the market will see it mostly as a positive,” said Chris Larkin, managing director of trading and investing for E-Trade from Morgan Stanley.

“Investors will have to remain patient, though,” he added. “The Fed has suggested it will take more than one month of favorable data to confirm inflation is reliably moving lower again, so there’s still no reason to think a first rate cut will come any earlier than September.”

As inflation data has come in hotter than expected, central bank officials have encouraged a cautious approach. That means less likelihood that they will be cutting rates anytime soon.

Most recently, New York Fed President John Williams said Thursday that while he is confident inflation will continue to recede, prices are still too high and he has not seen sufficient progress on moving to the Fed’s 2% annual goal.

Markets have reined in their expectations for rate reductions this year. Pricing Friday morning indicated a probability that the first move likely won’t come until November, at the Fed’s meeting that concludes two days after the presidential election.

This post appeared first on NBC NEWS
Previous Post

N.Y. Fed President John Williams says inflation is too high but will start coming down soon

Next Post

Top adviser recommends against Elon Musk’s $56B Tesla pay package

Next Post
Top adviser recommends against Elon Musk’s $56B Tesla pay package

Top adviser recommends against Elon Musk’s $56B Tesla pay package

  • Trending
  • Comments
  • Latest
Top 10 Potash Countries by Production (Updated 2024)

Top 10 Potash Countries by Production (Updated 2024)

August 21, 2024
Top 10 Cobalt Producers by Country (Updated 2024)

Top 10 Cobalt Producers by Country (Updated 2024)

September 19, 2024
Sen. Peter Welch says Israel ground invasion would ‘exacerbate’ conditions in Gaza: ‘Grave concerns’

Sen. Peter Welch says Israel ground invasion would ‘exacerbate’ conditions in Gaza: ‘Grave concerns’

October 24, 2023
Top 10 Phosphate Countries by Production (Updated 2024)

Top 10 Phosphate Countries by Production (Updated 2024)

August 1, 2024
Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

0
New Hampshire Gov. Sununu signs $15.2B ‘miracle’ budget into law

New Hampshire Gov. Sununu signs $15.2B ‘miracle’ budget into law

0

Pennsylvania House clears tax credits for new teachers, nurses, police officers

0
Evers signs bipartisan sales tax bill aimed at sparing Milwaukee from bankruptcy

Evers signs bipartisan sales tax bill aimed at sparing Milwaukee from bankruptcy

0
Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

June 7, 2025
How AI is Poised to Rewire the Foundations of Medicine

How AI is Poised to Rewire the Foundations of Medicine

June 7, 2025
Trailbreaker Resources Announces Exchange Approval Of COHO Property Option

Trailbreaker Resources Announces Exchange Approval Of COHO Property Option

June 7, 2025
Hempalta Provides Strategic Update Regarding Equipment Sale and FCC Agreement

Hempalta Provides Strategic Update Regarding Equipment Sale and FCC Agreement

June 7, 2025
Enter Your Information Below To Receive Trading Ideas and Latest News

Error: Contact form not found.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Recent News

Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

Web Summit 2025: AI Innovation, Investment Shifts and Global Tech Alliances Take Center Stage

June 7, 2025
How AI is Poised to Rewire the Foundations of Medicine

How AI is Poised to Rewire the Foundations of Medicine

June 7, 2025
Trailbreaker Resources Announces Exchange Approval Of COHO Property Option

Trailbreaker Resources Announces Exchange Approval Of COHO Property Option

June 7, 2025
Hempalta Provides Strategic Update Regarding Equipment Sale and FCC Agreement

Hempalta Provides Strategic Update Regarding Equipment Sale and FCC Agreement

June 7, 2025
  • About us
  • Privacy Policy
  • Terms & Conditions
  • About us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 revenueagenda.com | All Rights Reserved

No Result
View All Result
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy

Copyright © 2025 revenueagenda.com | All Rights Reserved