Excess Spending Keeps Inflation Above Target in April

The conflict in the Middle East has pushed prices higher this year. But the latest data from the Bureau of Economic Analysis suggests the worst of the price hikes may be in the rear-view mirror.

Excess Spending Keeps Inflation Above Target in April. The conflict in the Middle East has pushed prices higher this year. But the latest data from the Bureau of Economic Analysis suggests the worst of the price hikes may be in the rear-view mirror. The Personal Consumption Expenditures Price Index ( PCEPI ), which is the Federal Reserve’s preferred measure of inflation, grew at an annualized rate of 4.9 percent in April 2026, down from 8.3 percent in the prior month. The PCEPI grew at an annualized rate of 4.8 percent over the last six months and 3.8 percent over the last year. Core inflation, which excludes food and energy prices and is thought to be a better gauge of the underlying rate of inflation, also declined. Core PCEPI grew at an annualized rate of 2.9 percent in April 2026, down from 3.6 in the prior month. It grew at an annual...