US Inflation Climbs as Consumers Spent More in May

• US May Personal Spending fell 0.7% M/M, against an estimated rise of 0.6%.
• US May Core PCE Price Index rose 0.3% M/M (in line with estimates) and 4.1% Y/Y (in line with estimates).
• US May Headline PCE Price Index rose 0.4% M/M (slightly below est. +0.5%) and 4.1% Y/Y (in line with est.).
• US Jobless Claims came in at 215,000 for the June 20 week, below the estimated 225,000.
• Equity futures (S&P, Nasdaq) saw gains, while bond yields initially rose then fell at the front end of the curve.

The video analyzes May's personal spending and PCE inflation data, revealing a larger-than-expected fall in personal spending and a slightly softer headline PCE. Despite these small downside surprises, core PCE and year-over-year inflation remain elevated, reinforcing the Fed's hawkish stance. Equity futures rose, while bond yields saw mixed reactions.