Fed's preferred core inflation gauge cools; personal spending unexpectedly falls

According to Jinshi Data on May 31, data showed that the Fed's preferred measure of potential inflation in the United States slowed down in April, which is a step in the right direction for policymakers who are now seeking confidence to start cutting interest rates. The U.S. core PCE price index in April was 0.2% month-on-month, lower than expected (0.3%). Economists believe that the core index is a better reflection of inflation than the overall index. In addition, the U.S. personal spending in April was 0.2% month-on-month, which was also a sharp drop from the revised 0.7% in the previous month.