Inflation measure closely watched by the Fed rises 0.3% in April

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Bolvin Wealth Management Group President Gina Bolvin discusses the move in commodities, expected inflation data, the housing industry and her outlook for consumers.

An inflation measure closely watched by the Federal Reserve held steady in April as elevated prices continue to weigh on millions of Americans.

The personal consumption expenditures (PCE) index showed that prices rose 0.3% from the previous month, according to the Labor Department. On an annual basis, prices climbed 2.7%. Both of those figures are in line with expectations.

In another sign that inflation remains stubbornly high, core prices — which strip out the more volatile measurements of food and energy — climbed 0.2% from the previous month. From a year ago, prices are up 2.8%, unchanged from the previous two months.

«The PCE Price Index didn’t show much progress on inflation, but it didn’t show any backsliding, either,» said Chris Larkin, managing director of trading and investing at E*Trade.

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While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%, Chair Jerome Powell previously told reporters that core data is actually a better indicator of inflation. Both the core and headline numbers point to inflation that is still running well above the Fed’s preferred 2% target.

Prices for goods rose 0.2% over the course of April, which included a 1.2% leap in energy prices and a 0.2% decline in food costs, while services prices were up 0.3%, according to the report. 

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Shoppers are seen in a Kroger supermarket in Atlanta on Oct. 14, 2022. (Elijah Nouvelage/AFP via Getty Images / Getty Images)

High inflation has created