Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation measure, rose at a 3.8% year-over-year basis in April, the Bureau of Economic Analysis reported today. Core PCE inflation advances 3.3% on year-over-year basis. The Fed’s increasingly irrelevant inflation target is 2%.
The bad news on inflation comes as other data show household income faltering. Household income fell after adjusting for inflation by 0.5%. It was the third straight monthly decline. The saving rate hit a four-year low.
