Fact Check: Key inflation gauge rose 2.3% in May, prices stubbornly elevated.

Fact Check: Key Inflation Gauge Rose 2.3% in May, Prices Stubbornly Elevated

What We Know

In May 2025, a key inflation gauge, specifically the Personal Consumption Expenditures (PCE) price index, rose by 2.3% compared to the same month in the previous year. This increase was noted by the U.S. Commerce Department and marks an uptick from 2.1% in April 2025 (ABC News). Furthermore, when excluding the more volatile categories of food and energy, core prices increased by 2.7%, up from 2.5% in April (Reuters). Both of these figures are above the Federal Reserve's target inflation rate of 2%.

The report also indicated that consumer spending fell by 0.1% in May, marking the first decline since January 2025, which may reflect a shift in consumer behavior amid rising prices (Spectrum Local News).

Analysis

The claim that the key inflation gauge rose 2.3% in May is supported by multiple credible sources, including the U.S. Commerce Department and major news outlets like ABC News and Reuters. These sources provide consistent data that aligns with the reported figures. The increase in core prices to 2.7% further emphasizes the persistence of inflation beyond just food and energy costs, suggesting a broader economic trend.

However, it is important to consider the context of these figures. The increase in inflation rates comes at a time when consumer spending is declining, which could indicate that consumers are becoming more cautious in their purchasing behavior due to rising prices. This duality suggests that while inflation remains elevated, economic growth may be slowing as consumers adjust their spending habits (Spectrum Local News).

The reliability of the sources is high, as they are established news organizations and government entities. The data provided is consistent across reports, which adds to its credibility. However, it is also essential to consider potential biases in reporting, particularly in how economic data is interpreted. Some reports may emphasize the negative aspects of inflation without adequately addressing the underlying economic conditions that contribute to these trends.

Conclusion

The claim that the key inflation gauge rose 2.3% in May, with prices remaining stubbornly elevated, is True. The evidence from multiple credible sources confirms this statistic, and the context surrounding consumer spending and core inflation rates supports the assertion that inflationary pressures are still significant in the current economic landscape.

Fact Check: Key inflation gauge rose 2.3% in May, prices stubbornly elevated.