U.S. PCE Prices Rise 3.8% in April, Highest in Nearly Three Years

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A supermarket in Los Angeles, USA. [Photo: EPA & Yonhap News]

The U.S. Personal Consumption Expenditures (PCE) price index rose 3.8% in April compared to the same month last year, marking the highest increase in nearly three years, driven by high oil prices amid the ongoing U.S.-Iran conflict.
According to a report by Yonhap News on May 28, the U.S. Department of Commerce announced that the PCE price index increased by 0.4% from March.
This is the largest rise since May 2023, when it reached 4.0%. Excluding food and energy, the core PCE price index rose 3.3% year-over-year, the highest since October 2023, and increased by 0.2% from the previous month.
The year-over-year increases for both the overall and core indices aligned with the forecasts compiled by Dow Jones. However, the month-over-month increases for both indices fell short of expert expectations by 0.1 percentage points.
The rise in the PCE price index has been accelerating since February due to the impact of high oil prices stemming from the Iran conflict.
The PCE price index reflects the prices of goods and services consumed by households and is a key indicator used by the Federal Reserve to assess its monetary policy goal of a 2% inflation rate.

* This article has been translated by AI.