US Fed's Preferred Inflation Gauge Picks Up As Tariff Effects Loom

The Federal Reserve's preferred inflation gauge rose 2.3 percent in May, but consumer spending pulled back in part due to autos (Credit: AFP)

The US Federal Reserve's preferred measure of inflation edged up in May while spending weakened, government data showed Friday, with policymakers monitoring the effects of President Donald Trump's tariffs in the coming months.

The personal consumption expenditures (PCE) price index climbed 2.3 percent last month from a year ago, the Commerce Department said in a report.