US May PCE price index y/y rose to 4.1%, the largest gain since April 2023 and the first reading above 4.0% in three years, the US Commerce Department said. Higher energy following recent US-led military action against Iran lifted oil and gasoline prices; a fragile ceasefire has since eased oil and gasoline but economists expect inflation to remain elevated for a period. Consumers had already been contending with price increases from Trump-era import tariffs. The Fed last week held the policy ra

US May PCE price index y/y rose to 4.1%, the largest gain since April 2023 and the first reading above 4.0% in three years, the US Commerce Department said. Higher energy following recent US-led military action against Iran lifted oil and gasoline prices; a fragile ceasefire has since eased oil and gasoline but economists expect inflation to remain elevated for a period. Consumers had already been contending with price increases from Trump-era import tariffs. The Fed last week held the policy rate at 3.50%-3.75% but updated projections show officials expect rate hikes this year amid rising inflation concerns; markets price the first hike as early as September, with another likely thereafter.