US April PCE Inflation Hits 3.8% as Core Rate Cools More Than Expected

The Commerce Department reported Thursday that the headline Personal Consumption Expenditures price index rose 3.8% year-over-year in April, matching economists' expectations and accelerating from 3.5% in March. The core PCE index, which strips out volatile food and energy prices, increased 3.3% from a year earlier, in line with forecasts. On a monthly basis, core prices rose just 0.2%, below the anticipated 0.3% and the prior month's pace, signaling cooling underlying inflation. Personal spending climbed 0.5%, meeting estimates but down sharply from 0.9% in March, while personal income was flat, missing the projected 0.4% gain. Following the data, the dollar index dipped slightly to 99.22, the yield on the 10-year Treasury note fell to 4.50%, and spot gold jumped about $10 to $4,393.06 an ounce. Nasdaq 100 futures edged 0.2% lower.