Economists had expected the personal consumption expenditures index to tick down slightly to 2.2% from the month before.

Don't pop open the bubbly yet. The PCE index released Friday shows inflation easing to 2.1% annually in April, its lowest reading of the year. But it will likely reaccelerate for the remainder of 2025,

U.S. inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1% last month after being unchanged in March,

The Fed’s preferred gauge of consumer prices ticked up just slightly in April, a modest increase that lowered the 12-month inflation rate.

Inflation has edged down, but high housing costs could spark a fresh rise in prices and keep the Fed from cutting rates, Stifel's top economist said.

Friday brings another glimpse into how much of an issue inflation is in the U.S. economy. The PCE price index is expected to tick up 0.1% M/M in April vs. flat in March, according to the consensus of economists.

Investors will eye a range of data and reports in the remainder of this week to see how the trade war is affecting the economy, household sentiment and policymakers' thinking. Key reports will include Federal Reserve minutes,

Consumer prices rose 2.4 per cent for the year to April, according to the Australian Bureau of Statistics. It is the third month in a row that headline inflation rate has remained steady.