US Inflation Surpasses Fed Target, PCE Index Hits 4.1% in May

U.S. inflation is now officially running at more than twice the Federal Reserve's 2.0% goal. The core PCE price index rose to 3.4%, the highest level since October 2023. Overall PCE inflation reached 4.1% in May, marking the strongest reading since April 2023 and the Fed's preferred gauge for price pressures.