An article summarized by CNBC:

The Federal Reserve's preferred inflation measure accelerated in May, underscoring growing concerns that price pressures remain persistent. The core Personal Consumption Expenditures (PCE) index, which excludes food and energy, rose 3.4% from a year ago, its highest level since October 2023, while headline PCE inflation reached 4.1% annually, the highest reading since April 2023. Rising energy costs, fueled by disruptions linked to the Iran conflict, were a major driver, though economists are increasingly concerned that inflation is spreading into other parts of the economy.

The inflation data strengthens the Federal Reserve's recent hawkish stance under Chair Kevin Warsh. Policymakers have emphasized restoring price stability after years of inflation running above the Fed's 2% target and have signaled that interest rate hikes remain possible. While the Fed often looks through temporary supply-driven price spikes, officials are becoming more concerned that higher energy costs and tariffs are feeding broader inflation, making it harder to bring prices under control.

Despite elevated inflation, the broader economy remains resilient. Consumer spending rose 0.7%, outpacing inflation and exceeding expectations, while personal income also climbed 0.7%. Other economic indicators were strong as well, with first-quarter GDP growth revised up to 2.1% and weekly jobless claims falling below forecasts. The combination of stubborn inflation and solid economic growth suggests the Fed may face continued pressure to keep monetary policy tight in the months ahead.

For the article: https://www.cnbc.com/2026/06/25/pce-inflation-report-may-2026-.html