FX.co ★ US PCE Prices Rise 0.1%, Core Accelerates

The U.S. Personal Consumption Expenditures (PCE) price index experienced a 0.1% increase month-over-month in May 2025, consistent with April's growth and aligning with predictions. Specifically, prices for goods rose by 0.1%, maintaining the same rate as April, while service prices saw a rise of 0.2%, an uptick from the previous month's 0.1%. The core PCE index, excluding the volatile categories of food and energy, increased by 0.2%, surpassing both the 0.1% observed in the previous two months and the forecast of 0.1%. Additionally, food prices rose by 0.2%, a recovery from a 0.3% decline in April, whereas the prices for energy goods and services fell by 1% following a 0.5% increase in April. On an annual basis, headline PCE inflation accelerated to 2.3%, up from an upwardly adjusted 2.2%, and in line with expectations. In a similar vein, core PCE inflation climbed to 2.7% from an upwardly revised 2.6%, exceeding the anticipated 2.6%. The PCE index serves as the Federal Reserve's favored measure of inflation.