US PCE inflation hits 4.1%, a three-year high (opens in new tab)

The U.S. Commerce Department said the personal consumption expenditures price index rose 4.1% in May from a year earlier, up from 3.8% in April and the highest annual reading since April 2023. Prices rose 0.4% from April, matching April’s monthly increase and slowing from 0.7% in March. Core PCE, which excludes food and energy, rose 3.4% from a year earlier, above April’s 3.3% reading and the highest since October 2023. The increase reflected higher gasoline and energy costs tied to the U.S.-...