Key inflation indicator posts biggest year-over-year gain in nearly three decades

The May core personal consumption expenditures price index, an important inflation gauge for policymakers, rose 3.4% from a year ago, in line with Wall Street estimates.

That was the biggest increase since 1992 and reflective of ongoing price pressures.

Consumer spending was flat for the month, missing expectations, while personal income declined 2%, less than the expected 2.7% drop.