The Fed's preferred inflation gauge is running at its hottest pace in three years

Consumer spending rose 0.5% in April even as disposable personal income fell, the Bureau of Economic Analysis said

Renovation work continues on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System on December 9, 2025 in Washington, DC. (Andrew Harnik/Getty Images)

The U.S. personal consumption expenditures price index rose 3.8% in April from a year earlier, the Bureau of Economic Analysis reported Thursday, the highest annual rate in nearly three years.

April's figure extended a streak of three consecutive........

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