FX.co ★ US PCE Prices Rise as Expected

In April 2025, the U.S. Personal Consumption Expenditures (PCE) price index experienced a month-over-month increase of 0.1%, meeting market expectations after showing no change in March. The prices of goods rose by 0.1%, following a 0.5% decrease in the previous month, while service prices also increased by 0.1%, slowing from a 0.2% rise. The core PCE index, excluding the volatile food and energy sectors, similarly saw an increase of 0.1%, consistent with the revised figure from March and aligning with forecasts. In a separate development, the prices for energy-related goods and services climbed by 0.5% after a significant 2.7% drop, whereas food prices decreased by 0.3% following a 0.5% increase. Annually, headline PCE inflation continued its two-month decline, reaching 2.1%—the lowest rate in seven months—down from 2.3% in March and slightly below the anticipated 2.2%. Likewise, core PCE inflation fell to 2.5%, marking its lowest point since March 2021, from a revised 2.7% the previous month, in line with expectations. The PCE index remains the Federal Reserve's primary measure for inflation assessment.