The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures index, rose 4.1% in May, the highest level in three years. Core PCE, which excludes volatile food and energy prices, climbed to 3.4%, also the highest since October 2023. The data keeps the central bank holding interest rates steady with an eye toward hiking if inflation does not dissipate. Nine Fed officials penciled in at least one rate hike this year, while markets see a 50% chance of a quarter-point increase by September.