The Fed’s preferred inflation gauge, the core PCE price index, rose 2.5% year-over-year in April, marking the lowest level for the index in over four years.

Consumer spending slowed despite rising incomes, potentially an early reaction to higher prices on some imported goods.

Don't pop open the bubbly yet. The PCE index released Friday shows inflation easing to 2.1% annually in April, its lowest reading of the year. But it will likely reaccelerate for the remainder of 2025,

American consumers reined in their spending and socked away their money in April following a tariff-fueled buying binge the month before, according to new data released Friday that also showed inflation cooled off again.

U.S. inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March,

Inflation has edged down, but high housing costs could spark a fresh rise in prices and keep the Fed from cutting rates, Stifel's top economist said.

Friday brings another glimpse into how much of an issue inflation is in the U.S. economy. The PCE price index is expected to tick up 0.1% M/M in April vs. flat in March, according to the consensus of economists.

San Francisco Federal Reserve Bank President Mary Daly said on Friday cooling inflation offers "relief" for Americans suffering from high prices, but that there are risks of higher inflation ahead.