(BEA) US Federal Reserve’s preferred inflation gauge, the PCE price index, which excludes volatile food and energy, rose by 4.9% from the prior year.
Including food and energy, the personal consumption expenditures price index jumped by 6.3% in April from the prior year. The energy prices increased by 30.4%, while food prices were up 10.0%.
On a monthly basis, the PCE price index increased by 0.2%. The index was up 0.3%, excluding food and energy.
The rise in the key inflation gauge happens even as the personal incomes increased by 0.4% or $89.3 billion in April. The disposable personal income was up by 0.3%, or $48.3 billion, while PCE rose by 0.9%, or $152.3 billion.
In current dollar terms, real DPI increased by less than 0.1%, while Real PCE was up by 0.7%. Spending on goods and services rose by 1.0% and 0.5%, respectively, in April.
The total personal outlays rose by $155.3 billion, with a personal saving of $815.3 billion. The personal savings rate was 4.4%.
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