Key inflation indicator posts biggest year-over-year gain in nearly three decades
June 25, 2021 | Jeff Cox | CNBC
A key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May from a year ago, the fastest increase since the early 1990s, the Commerce Department reported Friday.
Though the gain was the biggest since April 1992, it met the Dow Jones estimate and markets reacted little to the news. The stock market posted mostly solid gains, while government bond yields were moderately higher.
The core personal consumption expenditures price index increase reflects the rapid pace of economic expansion and resulting price pressures, and amplified how far the nation has come since the Covid pandemic-induced shutdown of 2020.
