Similarly, Housing (PCE) saw a 5.5% year-over-year rise in May, easing from 5.6% in April and down from its highest point of 8.3% in April 2023. With asking rents largely stable compared to last year, these housing-related inflation measures are expected to keep gradually decrease further in the coming months.
Key inflation indicators are currently slightly above the Fed’s target when measured on a 3-month annualized basis. It’s worth noting that PCE prices, particularly in January, may be affected by some residual seasonality in the first quarter. The recent release shows:
- PCE Price Index: 2.4% (3-month annualized)
- Core PCE Prices: 2.7%
- Core PCE excluding Housing: 2.2%