Key US Inflation Measure Hits 3.3 Percent in April Amid Stagnant Consumer Incomes
Washington, Thursday, 28 May 2026.
The Federal Reserve’s preferred inflation gauge rose 3.3% annually in April 2026. With overall inflation reaching 3.8% and incomes stalling, future interest rate hikes remain a distinct possibility.
Unpacking the April Inflation Data
On Thursday, May 28, 2026, the US Bureau of Economic Analysis (BEA) reported that the Core Personal Consumption Expenditures (PCE) Price Index increased by 3.3% year-over-year in April [1][2][4]. This core metric, which strips out volatile food and energy costs, rose 0.2% on a monthly basis, coming in slightly below the market consensus of 0.3% [2][3]. Meanwhile, the headline PCE price index, which includes all consumer expenses, accelerated to an annual rate of 3.8% in April 2026, up from 3.5% in March [1][2][7]. This represents a 0.3 percentage point acceleration in the annual headline rate. The monthly headline figure increased by 0.4%, representing a deceleration of 0.3 percentage points from March’s 0.7% growth, and narrowly missed the 0.5% forecast [2][7].