2024-06-29 03:50:00 ET
Summary
- The United States experienced a mild deflation in May, according to new data from the Bureau of Economic Analysis.
- PCEPI, which is the Federal Reserve’s preferred measure of inflation, grew at a continuously compounding annual rate of -0.1 percent in May 2024, down from 3.2 percent in the prior month.
- Core PCEPI grew at a continuously compounding annual rate of 1.0 percent in May 2024, down from 3.1 percent in April and 4.0 percent in March.
The United States experienced a mild deflation in May, according to new data from the Bureau of Economic Analysis (BEA). The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew at a continuously compounding annual rate of -0.1 percent in May 2024, down from 3.2 percent in the prior month. The PCEPI has grown 2.5 percent over the last year and 3.8 percent per year since January 2020, just prior to the pandemic. Prices today are 8.9 percentage points higher than they would have been had the Fed hit its 2-percent inflation target over the period....
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Prices Decline In May, Monetary Policy Tightens