Core PCE Inflation Hits Three Decade High

Policymakers continue to promote public perception of consumer price inflation that is false. During the first five months of 2021, core consumer price inflation, as measured by the Fed's targeted personal consumption deflator, increased at an annual rate of 4.7%. That represents the fastest increase since 1989. Also, there is no base effect in that estimate as it measures consumer price increases since the start of 2021.