Morningstar

April PCE Report: Inflation Index Up 3.8% as Price Pressures Build

The PCE Price Index increased 0.4% in April.

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Collage illustration of a pie chart featuring images of the Federal Reserve, a stack of coins, and a ticker board.

The April Personal Consumption Expenditures Price Index posted a slightly softer-than-expected increase, up 3.8% from year-ago levels, as inflation pressure grew from March’s readings. Economists forecast that the index would rise 3.9%.

When volatile food and energy costs are factored out, the Federal Reserve’s preferred measure of inflation increased 3.3% from one year ago, in line with expectations.

The PCE Price Index increased 0.4% from month-ago levels. Excluding food and energy, the index increased 0.24%.

April PCE Inflation Report Highlights

  • The PCE Price Index rose 0.40% in April, below the FactSet consensus forecast for a 0.53% increase and following an increase of 0.66% in March.
  • Core PCE rose 0.24% in April, below forecasts for a 0.30% increase and following an increase of 0.30% in March.
  • The PCE Price Index rose 3.8% year over year in April, below forecasts for a 3.9% increase and following an increase of 3.5% in March.
  • Core PCE rose 3.3% year over year in April, in line with forecasts and following an increase of 3.2% in March.

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