Economists: The year-on-year core inflation indicator PCE is expected to improve in April.

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On 16 May, the Fed's favored measure of core inflation is likely to fall to its lowest level since 2021 in April's data. Excluding volatile food and energy prices, core PCE could fall to 2.5% y/y in April from 2.6% in March. This would be the lowest level since March 2021, just before the pandemic-era spike in inflation really began. ( )BlockBeats previously reported that Fed Chair Jerome Powell said today that the PCE could be around 2.2% in April.

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