Key Takeaways

• Consumer prices likely rose slowly in May, as measured by Personal Consumption Expenditures (PCE), the Federal Reserve's preferred measure of inflation.
  
• According to forecasters, core PCE prices are expected to rise 0.1% over the month, the same increase as in April. This will result in a 2.6% annual increase compared to 2.5% in April.
  
• The Fed targets a 2% annual inflation rate, so from the central bank's view, inflation still needs to come down.
  

Consumer prices likely rose slowly in May, as measured by the Federal Reserve's preferred inflation gauge, which will be released on Friday. 

The Bureau of Economic Analysis report on Personal Consumption Expenditure (PCE) inflation is expected to show that prices for consumer purchases rose ...