Fed’s key inflation rate drops to 4-year low

The PCE rose at 2.5 percent year over year, according to the Bureau of Econmic Analysts (BEA). "Excluding food and energy, the PCE price index increased 2.5 percent from one year ago." Additionally, "Disposable personal income (DPI)—personal income less personal current taxes—increased $189.4 billion (0.8 percent) and personal consumption expenditures (PCE) increased $47.8 billion (0.2 percent)," the BEA reported.

The figure of 2.5 percent also came in lower than the expected PCE inflation rate, which was 2.6 percent, according to Forbes.

This news of the low inflation rate come as there have been fears over price-hikes with President Donald Trump implementing a number of tariffs on nations around the world after "liberation day" last month.

Economic analyst Kathy Bostjancic commented on the findings with respect to the tariffs, "The increased tariffs have not yet worked their way into the consumer inflation readings, but we anticipate that the improved inflation trend will reverse in the second half of the year," according to Yahoo Finance.

Month over month, the inflation rate increased by only 0.1 percent. There was also a 0.8 percent increase in personal income over the course of April, or $210 billion across the United States. Disposable personal income also increased by 0.8 percent.

Consumer spending increased in the areas of housing, healthcare, food services, gasoline, and a few other goods and services, but decreased it the areas of financial services, recreational goods and vehicles, clothing and footwear, as well as other goods and services.