Consumer prices, as measured by the personal consumption expenditures (PCE) price index excluding the volatile food and energy components, rose 0.7% in April, topping analysts’ 0.6% estimate and after a 0.4% increase in March. PCE is the Federal Reserve’s preferred measure of inflation. In the 12 months through April, the core PCE price index surged 3.1%, smashing through the Fed’s 2% target, as the reopening economy unleashed pent-up demand.

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