Core inflation hit an annual rate of 3.3% in April, as expected, Fed's preferred gauge shows

[BumRushDaShow]

Source: CNBC

Published Thu, May 28 2026 8:32 AM EDT Updated 27 Min Ago


Inflation continued to hit consumer wallets in April, likely keeping the Federal Reserve on the sidelines until the current wave subsides, fresh pricing data released Thursday showed.

The personal consumption expenditures price index increased a seasonally adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%, the Commerce Department reported. Economists surveyed by Dow Jones had been looking for respective readings of 0.5% and 3.8%. Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%.

While the annual rates were in line with forecasts, the soft monthly readings could provide some hope that the burst in prices over the previous month had begun to ease. The Fed takes in a wide dashboard of indicators, but uses the PCE measures as its prime forecasting and policy tool. Officials generally consider core a better indicators of long-term inflation trends as it excludes the volatile gas and groceries components.

In other economic news Thursday, gross domestic product growth in the first quarter was less than expected. GDP accelerated at an annualized rate of just 1.6% for the period, according to a revised Commerce Department reading that was below the initial estimate of 2%.

Read more: https://www.cnbc.com/2026/05/28/core-inflation-hit-an-annual-rate-of-3point3percent-in-april-as-expected-feds-preferred-gauge-shows-.html

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From the source - https://www.bea.gov/news/2026/personal-income-and-outlays-april-2026

[twodogsbarking]

1. Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3

Forget about eating, electricity and driving. Things are fine.

[progree]

2. No graphs today, maybe late Friday, in case anyone is wondering

I will post them here when I get them done. They are a little more work than other inflation graphs, because the PCE revises the previous 4 months as well. I have busy personal business days today and tomorrow.

They will also be at the top of my journal when posted
https://www.democraticunderground.com/~progree

I see today has lots of economic events
https://www.marketwatch.com/economy-politics/calendar

To see the graphs (and the source data links and the "table" of annualized 1 month, 3 month, and 12 month changes) from the previous month (the March PCE report released 4/30/26), see:
https://www.democraticunderground.com/10143658570#post1

[BumRushDaShow]

4. "I see today has lots of economic events"

The GDP was buried among the releases although got a passing mention at the OP link.

In other economic news Thursday, gross domestic product growth in the first quarter was less than expected. GDP accelerated at an annualized rate of just 1.6% for the period, according to a revised Commerce Department reading that was below the initial estimate of 2%.

The department said the initial reading was cut because of downward revisions to consumer spending and investment. The consensus was for GDP to hold at the earlier 2% estimate.

[progree]

3. Key inflation gauge worsens as Americans' income and spending power erodes, AP, 5/28/26

https://www.msn.com/en-us/money/markets/key-inflation-gauge-worsens-as-americans-income-and-spending-power-erodes/ar-AA24gQij

Thursday's report showed that Americans' after-tax, inflation-adjusted incomes fell for the third straight month, while spending, adjusted for inflation, barely rose.

Americans' incomes were unchanged in April from March, in part because farm incomes fell after a large government aid package ended last month. Adjusted for inflation, personal income actually slipped 0.1% last month.

Spending rose 0.5% in April from March, though most of that reflected price increases. Adjusted for inflation, spending rose just 0.1% in April, down from 0.3% the previous month.

Emphasis added

The above is some excerpts from the above article about the personal income and personal spending parts of the report -- the link to the report is in the OP, repeated below for convenience of reference. The report is about much more than just the inflation indices
https://www.bea.gov/news/2026/personal-income-and-outlays-april-2026

An excerpt from the AP report on the inflation part, LOL --

And on Wednesday, Treasury Secretary Scott Bessent said higher prices would be “transitory,” reviving an ill-fated term used by former Fed Chair Jerome Powell to describe the 2021-22 inflation spike that became a forceful political tailwind for Trump in his campaign for a second presidential term.

[LudwigPastorius]

5. "the soft monthly readings could provide some hope that the burst in prices over the previous month had begun to ease."

Are they high?