All articles tagged with #price index
In May, US inflation rose slightly to 2.4%, with modest monthly increases driven by shelter and food prices, amid ongoing trade tensions and tariff adjustments, prompting cautious outlooks from the Federal Reserve.
US consumer sentiment has dropped for the fourth consecutive month in November, while inflation expectations have risen, according to the University of Michigan's consumer survey. Consumers anticipate inflation to accelerate to 4.5% over the next year and 3.2% over a five-year horizon, the highest level since 2011. Despite the recent slowdown in inflation, consumers remain concerned that it could reverse in the future. The burden of inflation is disproportionately affecting low-income Americans, who struggle to cope with rising prices for everyday necessities.
Two new inflation measures, the PCE price index excluding food, energy, and housing, and PCE services excluding energy and housing, indicate a continuing disinflation trend. The Federal Reserve is closely monitoring these core measures of inflation, which are considered better predictors of future inflation than headline measures. In the second quarter, the PCE price index excluding food, energy, and housing slowed to a 3% rate, while PCE services excluding energy and housing slowed to a 3.5% rate. Chair Jerome Powell highlighted significant declines in core inflation, particularly in the goods sector, housing services, and non-housing services. The broader core PCE price index for the second quarter remained unchanged at 3.7%.