Annual core inflation rose 3.4% in May, highest rate since 2023

The core personal consumption expenditures inflation hit a 3.4% annual rate in May, marking the steepest increase since October 2023. This surge in core inflation, which excludes volatile food and energy prices, underscores persistent inflationary pressures in the economy. Such a rise is particularly significant as it could impact monetary policy decisions, potentially leading to higher interest rates to curb inflation. The implications extend beyond economic numbers, affecting consumer spending and overall economic stability.