Chart of the Day: Inflation Continues to Rise in May

The PCE inflation rate jumped again in May:

The core PCE rate, which excludes food and energy, is now above 2 percent for the first time since…15 months ago. So maybe this means there really is some inflationary pressure in the economy, or maybe it doesn’t mean very much at all. It will take the rest of the year to find out. In the meantime, however, this will confirm the Fed in its plan to continue raising interest rates steadily. I suppose I can’t blame them at this point, although given that the average core PCE over the past five years is only 1.9 percent, I still wish they’d be more willing to tolerate a higher upside value for a little longer.

Actually, I wish they’d been more willing to engineer a higher upside back in 2009-12, but they either couldn’t or wouldn’t. At this point, the economy is back to normal enough that tolerating only a smallish upside probably makes sense again.

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up to $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate