Overview

• The core PCE Price Index rose 2.5% year-over-year in April, down from 2.7% in March and in line with analyst forecasts.
• Both headline and core PCE measures recorded modest monthly gains of 0.1%.
• Personal income increased 0.8% and personal spending edged up 0.2% in April, reflecting cautious consumer activity.
• Federal Reserve Chair Jerome Powell has highlighted that inflation remains above the 2% target and flagged tariff-related uncertainties.
• Market observers say the data could pave the way for rate cuts later in 2025 if disinflation proves sustained.