Fed's Inflation Gauge Stagnant, More Action Needed

Inflation in April remained stubbornly high, with the Personal Consumption Expenditures price index rising 0.3% from the month before, matching March's rate at 2.7%. While core inflation slowed slightly, holding steady at 2.8%, consumer spending only increased by 0.2%, and disposable income gains retreated. Economists were not surprised by the lack of significant changes, with forecasts in line with March's data. The Federal Reserve faces an ongoing challenge in curbing inflation, as the latest report shows a bumpy road ahead.