Inflation rises at fastest pace since May 2023, Commerce Department data shows

Annual inflation rose at the highest rate in three years, according to an index that the Federal Reserve watches closely. 

The personal consumption expenditures price index rose 3.8% from the same time last year, the fastest annual rate since May 2023, the New York Times reported. At that time, the Fed was raising rates in hopes of bringing inflation under control following a flood of government spending during the pandemic. 

The measure of "core" inflation, which removes volatile food and energy prices, increased at 3.3%, which was the fastest rate since November 2023. 

On a monthly basis, inflation rose 0.4%, which was less than expected. Excluding food and energy, prices rose 0.2% for the month.