The first inflation report released since Kevin Warsh was sworn in as Fed chair suggests the central bank's largest challenge may be rising prices.

Key Takeaways As widely expected, the PCE price index rose to its highest in nearly three years in April.PCE inflation rose 3.8% over the year, its highest annual increase since May 2023.Prices excluding food and energy rose the most since November 2023.

Inflation jumped for a second consecutive month in April as the Iran war drove up gasoline prices and strained household budgets, government data on Thursday showed. Prices rose 3.8% in April compared to a year earlier,

The personal consumption expenditures price index, the Federal Reserve's preferred gauge of inflation, jumped due to higher energy costs.

High gas prices pushed up inflation again last month while adding to Americans’ financial strain: Households are saving at the lowest rate in nearly four years, a new report showed Thursday.

The PCE price index for April was expected to show an annual inflation rate of 3.8% for all items and 3.3% for core.

Economists expect the latest data will show the Federal Reserve’s official inflation gauge rose in April for the third month in a row, hitting yet another three-year high. The personal consumption expenditures price index isn't expected to show the major jumps that other price measures,