FX.co ★ U.S. Core PCE Price Index Sees Modest Increase in May 2025

The United States' Core Personal Consumption Expenditures (PCE) Price Index, a key measure of underlying inflation, has experienced a slight uptick in May 2025. According to the latest data updated on June 27, 2025, the index rose by 0.2% on a month-over-month basis. This marks a modest increase from the 0.1% change observed in April 2025.

The Core PCE Price Index is a critical indicator monitored by the Federal Reserve as it seeks to gauge inflation without the volatility of food and energy prices. The May increase suggests a subtle intensification in inflationary pressures, a factor policymakers may consider while devising future monetary strategies.

The newly reported 0.2% rise hints at a gradual pace of growth, aligning with the Fed's ongoing efforts to stimulate economic momentum while keeping inflation in check. Investors and economists alike will be closely observing subsequent data releases to better understand the trajectory of inflationary trends in 2025.