US Annual Core PCE Inflation Rises to 3.4% in May

Inflation in the US, as measured by the Personal Consumption Expenditures (PCE) Price Index, was 0.4% in May, the US Bureau of Economic Analysis reported on Friday. On a yearly basis, the PCE Price Index edged higher to 3.9% from 3.6%, compared to analysts’ estimate of 4%.

Stock market futures pointed to a gain of about 150 points for the Dow at the open, while government bond yields were mostly flat.

The increase in the core PCE price index reflects the rapid pace of economic expansion and the resulting price pressures.