The BEA released the Personal Income & Outlays for April 2024 and it shows PCE, the Fed’s preferred inflation measure, as still elevated.
From the BEA:
The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.2 percent (table 5). Real DPI decreased 0.1 percent in April and real PCE decreased 0.1 percent; goods decreased 0.4 percent and services increased 0.1 percent (tables 3 and 4).
source: BEA.gov
Clearly inflation remains above the 2 percent target and there has been no progress in the right direction despite elevated Fed Funds rate for well over a year now.
Will it take a hike to finally hammer inflation down? Will inflation spike back up in the near future? To find out stay tuned, stay profitable and stay solvent…