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A customer shops at Handy Market on May 14, 2026 in Burbank, California. <\/p>\n
Justin Sullivan | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Inflation continued to hit consumer wallets in April, likely keeping the Federal Reserve on the sidelines until the current wave subsides, fresh pricing data released Thursday showed.<\/p>\n
The personal consumption expenditures price index increased a seasonally adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%, the Commerce Department reported. Economists surveyed by Dow Jones had been looking for respective readings of 0.5% and 3.8%.<\/p>\n
Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%.<\/p>\n
While the annual rates were in line with forecasts, the soft monthly readings could provide some hope that the burst in prices over the previous month had begun to ease.<\/p>\n
In other economic news Thursday, gross domestic product growth in the first quarter was less than expected. GDP accelerated at an annualized rate of just 1.6% for the period, according to a revised Commerce Department reading that was below the initial estimate of 2%. <\/p>\n
The department said the initial reading was cut because of downward revisions to consumer spending and investment. The consensus was for GDP to hold at the earlier 2% estimate.<\/p>\n
Despite the soft Q1 reading for GDP, the department reported that consumer spending increased 0.5% in April, meeting the forecast. Income, though, was flat, against the estimate for a 0.4% increase.<\/p>\n
On the inflation front, goods prices jumped 0.7% in April, pushed again by gasoline, which surged 5.5%. Services prices rose 0.3%, which included a 0.6% acceleration in the housing and utilities category and a 0.5% increase in food services and accommodations.<\/p>\n
Housing prices broadly increased 0.5%, the biggest monthly gain going back at least until January 2025. Services excluding food, energy and housing rose just 0.2% for the month.<\/p>\n
This is breaking news. Please refresh for updates<\/strong>.<\/p>\n<\/div>\n
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