April PCE: Key Fed inflation gauge rose 0.2%, in line with expectations

May 31 (UPI) -- Inflation in April as measured by the personal consumption expenditures price index rose in line with economists' expectations, according to a Friday report from the Commerce Department's Bureau of Economic Analysis.

PCE rose 0.3% in April and 2.7% on an annual basis, while core PCE which excludes food and energy prices rose 0.2% and 2.8% respectively.

The monthly core PCE increase was in line with analysts' expectations while the annual rate was 0.1% higher than anticipated.

The BEA said goods prices increased 0.1% while prices for services increased 3.9%. The volatile categories of food and energy prices rose by 1.3% and 3% respectively.

"Prices for goods increased 0.1% and prices for services increased 3.9%x Food prices increased 1.3% and energy prices increased 3%. Excluding food and energy, the PCE price index increased 2.8% from one year ago."

Friday's BEA report said personal income increased 0.3% in April or $65.3 billion. Disposable personal income increased $40.2 billion.

The BEA said the current-dollar PCE increased $39.1 billion in April, reflecting an increase of $49.1 billion in spending for services that was partly offset by a $10.0 billion decrease in spending for goods.

Personal saving was $744.5 billion in April while the personal saving rate was 3.6%.

While the Federal Reserve is more focused on PCE another inflation measure, the Consumer Price Index, shows higher inflation numbers.

Consumer prices as measured by the personal consumption expenditures index in March rose a bit higher than expected, coming in at 2.7% while Dow Jones estimates for March were 2.6% on an annual basis.

PCE prices rose 0.3% for the month of March.