The core personal consumption expenditures price index showed a 3.4% annual rate after rising 0.3% for the month. The core annual reading was the highest since October 2023. The Fed’s primary inflation gauge also showed an annual rate of 4.1%, the highest since April 2023. Even with the elevated inflation levels, consumer spending for the month came in stronger than expected. Personal consumption expenditures rose 0.7% for the month. Also, gross domestic product, the broadest measure of growth, rose at a seasonally adjusted annualized pace of 2.1% in the first quarter, up 0.5 percentage point from the prior reading.
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