By Ovunc Kutlu
ISTANBUL (AA) - The US Federal Reserve's preferred inflation indicator softened in April on a monthly basis, according to Commerce Department figures released Friday.
The core personal consumption expenditures (PCE) price index monthly rose 0.2% in April, down from the 0.3% month-on-month gain in March, and came below the market expectations of a 0.3% increase.
On an annual basis, the core PCE price index 2.8% in April, following a 2.8% year-on-year increase in March, and came in line with market estimates.
The PCE price index, which includes food and energy prices, annually rose 2.7% in April, after a 2.7% annual gain in March, coming in line with market expectations.
That index, on a monthly basis, rose 0.3% in April, following a 0.3% month-on-month increase in March, also coming in line with estimates.
The Fed has made a total of 11 interest rate increases between March 2022 and July 2023 to tame the record inflation, carrying the federal funds rate to the 5.25%-5.5% target range – the highest in 22 years.
The central bank skipped four rate hikes last year, and three more this year, while its first rate cut is widely expected to happen in the second half of this year.