Fed’s preferred inflation gauge hits new three-year high in May as core PCE rises 4.1%
AI Market Summary
US core PCE inflation accelerated to 4.1% y/y, a three-year high, driven by gasoline and AI-related semiconductor/electronics costs, reinforcing sticky inflation risk. Apple's broad Mac/iPad price hikes highlight supply-driven goods inflation. While Q1 GDP was revised up to 2.1% on strong AI investment, weaker consumer spending and steady ~6.5% mortgage rates signal demand strain. Higher-for-longer rate expectations can tighten financial conditions and support USD.
Impact level
● High
Affected assets
NCSIDXY2USD/USDT-0.07%
AI Insight · NCSIDXY2USD/USDTAI Insight
▼ Bearish
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U.S. core PCE inflation rose 4.1% year over year in May, the highest since April 2023, driven largely by higher gasoline costs and rising prices for semiconductors and other computer equipment tied to AI demand. Apple said it is raising prices across its Mac and iPad lineup, citing a memory-chip shortage that has lifted component costs. The Commerce Department also revised first-quarter GDP growth up to a 2.1% annual rate, while noting a sharp pullback in consumer spending. Average 30-year mortgage rates stayed near 6.5% and weekly jobless claims fell to 215,000.
