In May, the personal consumption expenditures price index (PCE) rose 2.3% year-over-year, indicating persistent inflation above the Federal Reserve’s 2% target, with core prices increasing to 2.7%. Although consumer spending declined for the first time since January due to earlier purchases before tariffs, the overall impact of the Trump administration’s tariffs on prices remains modest, as companies absorb costs and many goods were imported before the duties took effect.
Explain It To Me Like I’m 5: The prices of things people buy went up a little bit in May, showing that it’s still hard for everyone to keep prices low, even though people are buying less stuff and making less money right now.
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