Economics
Core Inflation in U.S. Shows Signs of Life While Sentiment Cools
- Fed’s preferred price gauge picks up on three-month basis
- Consumer sentiment eases, Chicago gauge hits lowest since 2016
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The Federal Reserve’s preferred measure of underlying U.S. inflation showed signs of picking up in May toward the central bank’s goal, while gauges of consumer and business sentiment slipped, offering mixed signs on the economy as policy makers weigh an interest-rate cut at their meeting in late July.
The core personal consumption expenditures price gauge, which excludes food and energy, rose 0.2% from the prior month and 1.6% from a year earlier, according to a Commerce Department report Friday. The annual gain was just above the median estimate in a Bloomberg survey, and the three-month annualized increase advanced to about 2%, a five-month high.