US ‘core services’ PCE inflation jumps 0.46% in May as gasoline still drives prices
US “core services” PCE inflation rose 0.46% in May from April, an annualized 5.6%, while the six-month annualized pace reached 4.2%, the worst since June 2024. Core PCE inflation rose 0.32% in May from April, or 3.86% annualized. Gasoline prices remained a major driver of May inflation, though they have declined in recent weeks as crude oil prices fell. The figures underscore signs of sticky inflation and are shaping how markets price the Federal Reserve’s policy path.
