Fed’s Preferred Inflation Gauge Rose Less Than Expected in April, Consumer Spending Pressured By High Gas Prices

The Federal Reserve’s preferred measure of inflation rose by slightly less than forecast in April.

The personal consumption expenditures price index moved up 0.4 percent last month compared with March, according to the Commerce Department’s Bureau of Economic Analysis. Economists had forecast the index would rise by 0.5 percent.

In March, the index jumped 0.7 percent. Compared with a year ago, PCE prices rose 3.8 percent. The Federal Reserve says it targets a two percent annual rise in PCE prices.

Excluding volatile food and energy prices, core PCE inflation climbed by 0.2 percent in April and 3.3 percent over the past year. Economists had…

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