US PCE Index Declines, Impact of Trump's Policies

 The US consumer expenditure index or personal consumption expenditures (PEC) fell in May 2025. This is the first decline since the beginning of the year.

This is thought to be an indication of increasing uncertainty surrounding US President Donald Trump's economic policies, which continue to weigh on the country's growth prospects.

According to data from the U.S. Bureau of Economic Analysis, the personal consumption expenditures price index fell by 0.3% after adjusting for inflation. Meanwhile, the Federal Reserve's preferred inflation measure, the PCE price index excluding food and energy, rose by 0.2%. This figure was slightly higher than expected.