Inflation Unexpectedly Surges Higher, Putting Pressure on Fed To Keep Hiking

A gauge of consumer prices closely watched by the Federal Reserve showed inflation accelerating in April.

The personal consumption expenditure (PCE) price index rose 0.4 percent in April, up from the 0.1 percent rise a month earlier. Economists had forecast a milder increase to 0.3 percent.

Compared with April of last year, the PCE price index is up 4,4 percent, a faster annual pace of inflation than the 4.2 percent recorded in March.