US Inflation on the Rise, Fed Considers Rate Hikes

Inflation in the US, as measured by the change in Personal Consumption Expenditures (PCE) Price Index, rose to 4.4% on a yearly basis in April from 4.2% in March, the US Bureau of Economic Analysis reported on Friday. The increase in the annual Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, edged higher to 4.7% from 4.6% in the same period, compared to analysts' forecast of 4.6%. The benchmark 10-year US Treasury bond yield gained traction after these data and climbed to its highest level in over two months above 3.8%.