Core inflation rate hit 3.4% in May, highest since October 2023, Fed’s preferred gauge shows (opens in new tab)

The Federal Reserve’s primary price gauge rose at its highest core level since 2023, reinforcing the central bank’s recent tough talk on inflation. Excluding food and energy, the personal consumption expenditures price index showed a 3.4% annual rate after rising 0.3% for the month, both in line with Dow Jones consensus. The core reading was the highest since October 2023.