By Matthew Holloway |
The Joint Economic Committee (JEC) released an update Thursday showing inflation remained above the Federal Reserve’s target in April while consumer spending increased and personal savings declined.
According to the JEC’s Monthly Expenditures Update, the headline personal consumption expenditures (PCE) price index increased 0.40% from March to April, while core PCE inflation, which excludes food and energy prices, rose 0.24%. The annual inflation rate from April 2025 to April 2026 measured 3.77% for headline PCE and 3.29% for core PCE, both exceeding the Federal Reserve’s stated 2% inflation target.
The PCE index is the Federal Reserve’s preferred inflation measure and tracks changes in prices paid by consumers for goods and services.
The JEC reported that spending increased during the same period while savings declined. Real personal consumption expenditures increased by 0.11%, representing approximately $18.08 billion in additional spending. Real spending on services increased 0.19%, or $21.47 billion, while real spending on goods rose 0.08%, or $4.7 billion. At the same time, the nominal personal savings rate declined by 0.6 percentage points to 2.6%.
According to the committee’s update, headline personal income remained effectively unchanged month-over-month, increasing by approximately $19 million, while real disposable personal income per capita decreased by 0.50%. The report stated that after-tax income increased more slowly than consumer prices during the month.
The figures align with data released Thursday by the U.S. Bureau of Economic Analysis (BEA), which reported increases in both consumer spending and inflation during April. According to the BEA, personal income increased by $210.1 billion, or 0.8%, while disposable personal income increased by $189.4 billion, or 0.8%. Personal consumption expenditures increased $47.8 billion, or 0.2%.
The BEA reported that prices for personal consumption expenditures increased 0.4% month-over-month and 3.8% annually, while core PCE prices increased 0.2% during April and 3.3% over the previous twelve months.
The JEC also released its Gross Domestic Product Update for the second estimate of first-quarter 2026 economic activity.
According to the committee, real gross domestic product increased 1.62% from the fourth quarter of 2025 to the first quarter of 2026. Current-dollar GDP increased 5.15%, or approximately $396.9 billion, bringing the total size of the U.S. economy to $31.819 trillion.
JEC Chairman Rep. David Schweikert (R-AZ01), who is also running for governor of Arizona, discussed affordability and inflation during a segment with KTAR host Mike Broomhead, describing what he characterized as the continuing effects of “Biden inflation” on Arizona households.
“For people in Arizona, for a whole segment of our working middle class — you know, hardworking population — they’re poorer today than they were five years ago,” Schweikert said. “We were one of the epicenters of Biden inflation. Then you actually do policies from particularly the governor’s office of not recruiting new businesses here to compete for your willingness to work. So affordability — because our wages haven’t gone up — we’re now 45th in affordability. That’s miserable. I mean how many people can afford a house right now?”
In a post to X on Thursday, he wrote, “If we’re serious about affordability, the first thing we do is raise wages by bringing employers here that have to compete for Arizona workers.”
The committee’s GDP update reflected the Bureau of Economic Analysis’ second estimate for first-quarter economic growth. The full Joint Economic Committee Monthly Expenditures Update and GDP Update are available through the committee’s website.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
