Headline PCE inflation hit 3.8%, the highest since 2023, but a soft 0.2% monthly core reading offered some easing hope. Q1 GDP was revised down to 1.6% from 2%. The Bank of Canada released its Financial Stability Report and signalled it is weighing rate hikes on oil-driven inflation. The loonie strengthened to 1.35. Today’s USA and Canada intelligence brief covers the finance, markets, and economy tape — compiled across English and French-Canadian sources.
United States — Inflation Data
Headline PCE Hits 3.8%, Highest Since 2023
The Fed’s preferred inflation gauge, the PCE price index, rose to 3.8% year-on-year in April, its highest since May 2023, driven by the oil-price shock. The monthly headline rose 0.4%, a deceleration from March’s 0.7%.
Consumer spending rose 0.5% as Americans grappled with higher gas and essentials costs. Personal income slipped 0.1% on the month.
