US Core Inflation Rate Hits 2.7% in May, Personal Income Declines

May Economic Data Highlights

• 📉 Personal income saw its first negative reading since September 2021, falling by 0.4% in May, a notable shift from its previous strength.
• 💸 Consumer spending also experienced a decline, down 0.1%, marking the first negative spending figure since February 2021.
• 📊 Real spending decreased by 0.3%, indicating a slowdown in consumer purchasing power.

PCE Inflation Figures

• 🔥 PCE inflation on a month-over-month basis rose by 0.1%, meeting expectations, with the best performance this year being unchanged in March.
• 📈 Year-over-year PCE inflation was recorded at 2.3%, slightly higher than the previous month's 2.2% and matching expectations.

Core Inflation Details

• ⚠️ Core PCE inflation on a month-over-month basis increased by 0.2%, which was one-tenth higher than anticipated and the rearview mirror figure.
• 🎯 The core year-over-year PCE inflation reached 2.7%, one-tenth higher than the expected 2.6%, and an upward revision from the previous 2.6%.
• ⏳ This indicates a persistent