PCE Inflation Surges Further Away from Fed’s Target, now Nearly Double the Fed’s Target, and 5+ Years above Target

The all-items PCE price index jumped by 0.40% in April from March (+4.9% annualized), on top of the 0.66% spike (8.3% annualized) in the prior month, which had been the worst spike since mid-2022. Year-over-year, the PCE price index jumped by 3.8%, the worst since May 2023.