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2026-05-28 20:53:34
[US inflation hits three-year high in April, spending is weak, economic growth revised down] (1) Affected by the situation in Iran pushing up energy prices, US inflation-adjusted consumer spending grew by only 0.1% in April, the PCE price index rose 3.8% year-on-year (the highest since 2023), and core PCE rose 3.3% year-on-year. (2) The annualized growth rate of the US economy in the first quarter was revised down to 1.6%, lower than the initial value, mainly due to the downward revision of inventory investment and consumer spending data. (3) The inflation data may reinforce the calls within the Federal Reserve that the next interest rate action may not be a rate cut; the new chairman Warsh needs to convince his colleagues that curbing inflation expectations does not necessarily require raising interest rates.
