Inflation Ticks up in April

May 31, 2019

American consumers were paying more in April, and the Federal Reserve may be feeling vindicated. The personal consumption expenditures (PCE) price index increased 0.3 percent last month, its largest monthly increase since January 2018. This is up from a 0.2 percent increase in March. Annually, the index increased 1.5 percent.

The PCE index is the inflation tracker that the Fed uses to make determinations about interest rates, and they have a target of 2 percent inflation. Weak inflation in recent months has led to calls for the central bank to lower interest rates. April’s uptick gives support for the Fed’s claims that the sluggish inflation was “transitory,” and will likely reaffirm their decision to keep rates at their current levels.

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