Summary

• The Federal Reserve’s preferred inflation gauge, the core PCE price index, climbed 3.4% year-over-year in May, matching the forecast.
• The headline index surged 4.1% year-over-year, meeting expectations and marking its highest level since April 2023.
• The recent PCE figures suggest the "last mile" of the inflation fight is proving difficult.

By Jennifer Nash

The Federal Reserve’s preferred inflation gauge, the core PCE price index, climbed 3.4% year-over-year in May, matching the forecast. This marks the highest level since October 2023 and marks a pickup from April's 3.3% reading. On