The core PCE price index in the United States fell to 2.5% year-on-year in April, the lowest since March 2021.

This data is really interesting! The year-on-year core PCE price index in the US finally dropped to 2.5% in April, breaking the high record of nearly three years. I couldn't help but raise my eyebrows when I saw this news in front of the computer—this is a new low since March 2021!

Perfectly aligned with market expectations of 2.5%, the previous value was revised from the original 2.60% to a higher 2.7%. The monthly rate remained stable at 0.1%, which is also in line with expectations.

To be honest, I have some doubts about this so-called "relief from inflationary pressure." On the surface, it seems like a good thing, but could this just be a temporary phenomenon? Can the Federal Reserve really use this reason to justify lowering interest rates? I always feel that the official data sometimes does not align with the price increases we experience in our daily lives.

Many large players in the market are closely monitoring this indicator, as it is one of the key factors determining the direction of monetary policy. However, I doubt how much substance there is behind this data—statistical methods and selective calculations always raise questions.

Looking at the current economic environment, this data may indeed indicate that the future economy will be more stable, but we ordinary people should not be too optimistic. After all, the government and large institutions can always find ways to make the data appear to meet their expectations.

Disclaimer: Represents personal views only and does not constitute investment advice.