Inflation remained high in April, potentially strengthening the chance that interest rates could stay higher for longer, based on the PCE indicator released on Friday.
The price index of personal consumption expenditures, which measures a variety of goods and services and adjusts for changes in consumer behavior, rose 0.4% for the month excluding food and energy costs, higher than the Dow Jones estimate of 0.3%.
On an annual basis, the PCE rose 4.7%, 0.1 percentage point higher than expected, the Commerce Department reported. Including food and energy, PCE also rose 0.4% and rose 4.4% from a year ago, higher than the 4.2% rate in March.
The US dollar index returned to strength against six major currencies after the data was used, reducing the decline by 0.15% to trade at 104.013.
