PCE report today shows U.S. inflation ticked higher in May as consumers pared spending

The personal consumption expenditures price index, or the PCE, inched higher in May, the latest sign that inflation remains stubbornly above the Federal Reserve's 2% annual target.

Prices rose 2.3% in May compared with a year ago, up from just 2.1% in April, according to the PCE data. Excluding the volatile food and energy categories, core prices rose 2.7% from a year earlier, up from a rate of 2.5% the previous month. 

While inflation ticked higher, prices across the U.S. haven't yet shown a major impact from the Trump administration's tariffs. Federal Reserve Chair Jerome Powell cautioned earlier this week that inflation could reignite this summer as the import duties are passed through to consumers.