Slowdown in inflation and household spending in April

The core PCE price index, the measure of inflation favored by the US central bank, is up 0.3% month-on-month and 4.9% year-on-year, figures in line with Reuters consensus expectations.

In March, it had increased by 0.3% over one month and 5.2% over one year.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.9% last month after jumping 1.4% (revised) the previous month.

Economists polled by Reuters on average forecast a 0.7% rise in such spending in April.

Household incomes, for their part, rose by only 0.4% after rising 0.5% in March, while the consensus was anticipating an increase of 0.5%.

(Report Lucia Mutikani; French version Claude Chendjou, edited by Kate Entringer)

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