US inflation accelerated in April: Commerce department gauge


WASHINGTON: The US inflation The Federal Reserve’s most-watched measure accelerated in April, official figures showed on Friday, reversing a recent slowdown and increasing the likelihood of another rate hike in June.
Fed Chairman Jerome Powell has said the Federal Reserve is taking a “data-dependent approach” to its next decision, considering whether another rate hike is needed to bring inflation back to its long-term target of 2 percent.
The personal consumption expenditure (PCE) index rose 4.4 percent year-on-year in April, up from 4.2 percent the previous month, the Commerce Department said in a statement.
It was the first annual increase since January and was the result of strong annual price increases for services, food and goods.
Price increases also accelerated monthly, the Commerce Department said.
Excluding volatile food and energy prices, inflation also accelerated to 4.7 percent last month.
Analysts have been closely watching the speeches by members of the Fed’s Interest Rate Committee for clues as to how they are interpreting the latest economic data.
Some members of the Federal Open Markets Committee (FOMC), including Powell, have suggested that interest rates may have risen far enough to bring down inflation, while others, such as Dallas Fed Chair Lorie Logan, have expressed their preference for one more Rate hike at the next meeting have expressed in June.
According to data from CME Group, futures traders now see another Fed rate hike on June 14 as the most likely scenario.

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