A customer shops at Handy Market on May 14, 2026 in Burbank, California.
Justin Sullivan | Getty Images
Inflation continued to hit consumer wallets in April, likely keeping the Federal Reserve on the sidelines until the current wave subsides, fresh pricing data released Thursday showed.
The personal consumption expenditures price index increased a seasonally adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%, the Commerce Department reported. Economists surveyed by Dow Jones had been looking for respective readings of 0.5% and 3.8%.
Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%.
While the annual rates were in line with forecasts, the soft monthly readings could provide some hope that the burst in prices over the previous month had begun to ease.
In other economic news Thursday, gross domestic product growth in the first quarter was less than expected. GDP accelerated at an annualized rate of just 1.6% for the period, according to a revised Commerce Department reading that was below the initial estimate of 2%. The department said the initial reading was cut because of downward revisions to consumer spending and investment.
Despite the soft Q1 reading for GDP, the department reported that consumer spending increased 0.5% in April, meeting the forecast. Income, though, was flat, against the estimate for a 0.4% increase.
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