To view this email as a web page, click here.

By Kristin Myers, Editor-in-Chief

What's Happening Today

Happy Friday! It's Kristin with your daily morning digest.

Consumers have been shelling out 0.9% more for goods and services, according to the latest Personal Consumption Expenditures (PCE) Price Index figures for March, released by the Bureau of Economic Analysis this morning. The PCE Price Index is another gauge of inflation, and it shows how much more consumers must spend on household goods and services. The gain last month was slightly higher than February's 0.5% rise, and brought the index's annual rate up to 6.6%, the highest yearly increase since 1982.

The biggest contributor to the annual rise was spending on energy, which was 33.9% higher than a year ago, likely due to surges in oil prices. Food expenditures were up 9.2% from last year. The core PCE Index, which excludes more volatile food and energy prices, rose 0.3% last month, the same rate as February's revised gain. It was up 5.2% from a year earlier, just slightly below February's annual rate of 5.3%.

The PCE Price Index is also the Federal Reserve's preferred measure of inflation, as it includes a more comprehensive list of expenditures and responds more fluidly to changing consumer preferences than the Consumer Price Index (CPI). As inflation surges, the Fed is widely expected to raise its target federal funds rate by half a percentage point at the next two-day Federal Open Market Committee (FOMC) meeting that begins Tuesday.

Also released this morning, the University of Michigan's final Consumer Sentiment Index reading for April showed a 9.8% jump in sentiment on higher expectations for the economy and personal financial expectations in the year ahead. A sharp drop in gas price expectations played a big part. Rising wages and a stronger labor market helped, too. However, the index remained near decade-long lows as uncertainty about rising inflation, the war in Ukraine, and supply chain disruptions related to COVID-19 lockdowns in China continued to weigh on confidence, holding the index back from further gains.

- Kristin

Editors' Picks

Measure of Core Inflation Improves Slightly (The Balance)

Biden 'Weeks' From Student Loan Forgiveness Decision (The Balance)

Labor Department Criticizes Fidelity's Plan To Put Bitcoin on 401(k) Menu (The Wall Street Journal)

Manchin Rejects Biden's EV Tax Credit as 'Ludicrous' (Bloomberg)

Oil Dictionary: Your Guide to the Jargon (The Balance)

How To Qualify for a Home Loan (The Balance)

Why Is Estate Planning Important? (The Balance)

How Much Can I Roll Over Into a Roth IRA? (The Balance)

Please Take Our Reader Survey

Have you been impacted by rising prices? Take our quick survey and let us know. We'll share the results, and your answers are anonymous. Thanks so much!

Get Started

Off the Charts

Mortgage rates ticked up slightly, rising for the first time in three days but stayed firmly below their recent peaks. The average on a conventional 30-year fixed mortgage rose to 5.72% from 5.69% the previous business day. Earlier this month, it had vaulted to 6.19%, its highest point since at least 2019.

SPONSORED BY Better

Your Ultimate Guide to Buying a Home

Whether you're buying your first home or your dream home, this expert guide can help you take the guesswork out of the process. Learn More >

Number of the Day

70% - That's how many taxpayers could have filed their federal tax return for free under a government program that's so little known that only 3% actually did.

For The Balance's fourth Financial Literacy Month IG live series, we're discussing the topic of wealth and its enjoyment. Join The Balance Editor-in-Chief Kristin Myers with featured guest Teri Ijeoma, master investor and founder of Trade and Travel, on Wednesday, May 4, at 12 p.m. EST. Follow us on Instagram to get updates on The Balance's live events this month!