US inflation hits 3-year high
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US consumer spending edges up
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The personal consumption expenditures price index, the Federal Reserve's preferred gauge of inflation, jumped due to higher energy costs.
1don MSN
Inflation is at a three-year high — and now many Americans are burning through their savings
High gas prices pushed up inflation again last month while adding to Americans’ financial strain: Households are saving at the lowest rate in nearly four years, a new report showed Thursday.
Inflation is meaningfully above target, inflation expectations have been creeping higher and the public is highly sensitive to rising prices,” St. Louis Fed President Alberto Musalem said.
The PCE price index for April was expected to show an annual inflation rate of 3.8% for all items and 3.3% for core.
With income growth slowing and inflation pressures mounting, consumers tapped into their savings to keep spending afloat in April. The personal savings rate fell to 2.6% in April, a full percentage point lower than the 3.
The Consumer Price Index is the most commonly used measure of inflation in the United States. The CPI for all items increased by 0.9% in March 2026, on a seasonally adjusted basis, as reported by the U.
The recent surge in inflation is likely to get worse over the next several months, according to a survey Friday.
After newly released Consumer Price Index figures showed that the year-over-year inflation rate was 3.8% in April, the highest in nearly three years, President Donald Trump tried to reassure Americans about rising prices – in part by falsely claiming the inflation rate was just 1.