WASHINGTON, DC – This week, the Joint Economic Committee released its Monthly Expenditures Update for May. From April to May, personal consumption expenditures (PCE) price index inflation was 0.45 percent, slightly above the 0.40 percent from March to April.
Core PCE price index inflation, which excludes food and energy prices, was 0.32 percent up from 0.24 percent from March to April.
In the same period, spending increased while savings held steady. Real PCE increased by 0.26 percent, or $43.82 billion. Real PCE on all services increased by 0.17 percent, or $18.98 billion. Real PCE on all goods increased by 0.46 percent, or $26.28 billion, and the nominal personal savings rate remained unchanged with a net change of 0 percentage points to 3.0 percent.
From May 2025 to May 2026, headline PCE price index inflation was 4.07 percent up from April’s ending of 3.77 percent, which is higher than the Federal Reserve’s target of 2 percent, and core PCE price index inflation was 3.41 percent.
Month-over-month, headline personal income increased by 0.68 percent, or $181.58 billion, while real disposable personal income per capita increased by 0.23 percent, which means that after tax income rose more quickly than prices.
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