Inflation rate slipped to 2.1% in April, lower than expected, Fed’s preferred gauge shows

CNBC ^ | May 30, 2025 | Jeff Cox

[abb]

The personal consumption expenditures price index, the Federal Reserve’s key inflation measure, increased just 0.1% for the month, putting the annual inflation rate at 2.1%.

Core inflation also was at 0.1% for the month though it was higher on an annual level at 2.5%.

Consumer spending, though, slowed sharply for the month, posting just a 0.2% increase, while the savings rate surged to 4.9%, the highest in nearly a year.

[abb]

unexpected...

[SmokingJoe]

Biden gave us 40 year high inflation rates with super high gas prices.

[bray]

It will be revised lower in two weeks.

[fwdude]

unexpected...

Drink!

[abb]

We in Europe on vacation, and it’s almost 5 o’clock here. A very fortunate coincidence!!

[SaxxonWoods]

Powell’s drives by watching his rear-view mirror and here’s some more old news for him.

[Chauncey Gardiner]

When will this appear on lamestream media? Not holding my breath. Trump has whipped inflation in 100 days.

[TexasFreeper2009]

the left was wrong again, about inflation and tariffs.

[abb]

https://www.investopedia.com/the-fed-s-preferred-inflation-gauge-pce-april-11745187

The Fed’s Preferred Inflation Gauge Was Milder Than Expected In April

https://www.morningstar.com/economy/april-pce-report-pce-inflation-index-up-21-softer-than-expected

April PCE Report: PCE Inflation Index Up 2.1%, Softer Than Expected

https://www.forbes.com/sites/dereksaul/2025/05/30/april-inflation-milder-than-expected-as-tariff-impact-still-muted/

April Inflation Milder Than Expected As Tariff Impact Still Muted

https://www.xtb.com/int/market-analysis/news-and-research/breaking-inflation-expectations-in-the-us-cool-down-unexpectedly-sentiment-improves

BREAKING: Inflation expectations in the US cool down unexpectedly, sentiment improves

[Eleutheria5]

But...but...tariffs. Waaah.

[Jonny7797]

slipped? Like it was an accident.

[Hyman Roth]

Clark Griswold? Is that you?

[abb]

LOL!!

[blackdog]

The media celebrates $2 eggs, and 8% inflation. Go figure? Americans are truly a brain dead bunch just waiting like Pavlovian dogs for a bell.

[Owen]

It’s hard to surge inflation when GDP growth is so weak, as it is right now. 0.3ish%.

The slow GDP growth is largely in the G parameter because of the government layoffs — mostly a good thing.

It’s also not clear why the Fed target is 2% when population growth is < 1%.

And before FR gets too aggressive about celebrating 2.4% on the core PCE, core CPI is at 2.8% NSA. If you don’t have inflation, there is nothing moderate the debt, which is a rather more important threat to society than $4 eggs.

[nathanbedford]

If you don’t have inflation, there is nothing [to] moderate the debt, which is a rather more important threat to society than $4 eggs.

On the other hand, as and when GDP growth is weak enough due to private sector weakness, there will be nothing with which to pay the debt.

Thus, we see a tightrope that will have to be navigated because our profligacy has left no ample margins permitting us to stimulate the economy with low interest rates or curb inflation with high interest rates.

In the former case, the dollar is so weak and our fiscal reputation is so damaged that the debt cannot be rolled over at rates low and unattractive to bondholders. In the latter case, interest rates cannot be raised enough to curb inflation to satisfy bondholders because the high interest rate itself becomes an insurmountable addition to the deficit.

Typically we characterize the chairman of the Fed as the official walking the tight rope or "threading the needle" but Trump has publicly taken charge of the economy, not just with tariffs, but overall and explicitly with grand promises so that he will be blamed if we fall off one side of the tight rope or another.

You are right, this is not a time for celebrating but for praying.

[faucetman]

“Inflation rate slipped to 2.1% in April, lower than expected, Fed’s preferred gauge shows”

Say it ain’t so, Joe!

CAN’T BE! Tariffs will definitely cause inflation!

But, but, but, eggs, gas, ..... wait....