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US inflation held at 2.7 per cent in the year to April, according to the metric the Federal Reserve uses to set its target for price pressures.
Friday’s data on personal consumption expenditures was in line with economists’ expectations that inflation would remain the same as in March.
The Fed’s target for headline PCE is 2 per cent.
Core PCE, which ignores changes in food and fuel prices, was 2.8 per cent, also in line with expectations.
Fed officials’ next rate-setting vote is on June 12. They are expected to say that they need more data on inflation before lowering borrowing costs from their current 23-year high of 5.25 to 5.5 per cent.
US stock futures made muted gains following publication of the PCE figures.
Futures contracts tracking Wall Street’s S&P 500 share gauge added 0.2 per cent, reversing a small drop from earlier in the session, while those tracking the technology-heavy Nasdaq 100 index rose 0.1 per cent.
The policy-sensitive two-year Treasury yield, which closely tracks interest rate expectations, was steady at 4.93 per cent. The benchmark 10-year yield slipped 0.02 percentage points to 4.53 per cent. Yields fall as prices rise.
This is a developing story