New data shows U.S. inflation rose in May as consumer spending slowed

The latest Personal Consumption Expenditures (PCE) report, released on June 27, 2025, reveals a climb in U.S. inflation for May, juxtaposed with a slowdown in consumer spending. This uptick in inflation indicates ongoing financial pressures that American households are experiencing amidst fluctuating economic conditions. As inflation rises, consumer behavior is shifting as households aim to adjust their spending habits accordingly. Analysts suggest that this trend points to an economy grappling with balancing price increases and maintaining consumer confidence. The data sheds light on the complex interplay between inflation rates and consumer spending, which is central to understanding the broader economic landscape post-pandemic. With these insights, policymakers and stakeholders can better gauge economic health and potentially adjust fiscal strategies to support economic stability.

CBS News