( Business) — An inflation gauge closely watched by the Federal Reserve (Fed) showed that consumer prices were flat in May, indicating that inflation is still not slowing down, despite initial efforts by the central bank to calm the economy.
The monthly price index for personal consumption expenditures (PCE) increased 6.3% in the year ending in May, the Commerce Department reported Thursday. This digit coincides with April and suggests price increases have taken a breather since hitting a 40-year high of 6.6% in March.
The latest PCE report comes just three weeks after the consumer price index, another key measure of inflation, showed prices rising 8.6% year-on-year, their biggest increase in 40 years.
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