The core PCE rose 3.1% in April, more than expected. The index is generally considered a wide-ranging measure for inflation, and its growth reflects economic expansion.

Oil prices are rising, supported by an OPEC+ decision to restore supply to the market gradually and by the slow pace of nuclear talks between Iran and the U.S.

According to the Fed, the economic recovery picked up steam in the past 2 months, sparking price pressures as businesses contended with labor shortages and rising costs.

High prices and low supply could finally be taking some heat out of the housing market. Purchase applications fell 3% for the week and were 2% lower than a year ago.

According to a recent survey, a record high 51% of homes are selling over asking price. Last year that number was 26%, showing that demand is higher than available inventory.

There is speculation that housing inventory could increase when the eviction moratorium expires at the end of June and more homeowners exit forbearance.