PCE Inflation Index Accelerates to 2.5%, Core to 2.8%

From the preceding month, the PCE price index for February increased 0.3 percent (table 5). Prices for goods increased 0.5 percent and prices for services increased 0.3 percent. Food prices increased 0.1 percent and energy prices increased 2.3 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Detailed monthly PCE price indexes can be found on Table 2.4.4U.

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From the same month one year ago, the PCE price index for February increased 2.5 percent (table 7). Prices for services increased 3.8 percent and prices for goods decreased 0.2 percent. Food prices increased 1.3 percent and energy prices decreased 2.3 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago.

Ed Morrissey

The Fed finds itself between a rock and a hard place this morning. The sluggish GDP report yesterday was perhaps an opening for a small rate cut, but inflation is now undeniably accelerating again, too. Income after inflation dropped again as well, although real PCE (expenditures adjusted for inflation) rose fairly significantly, too. 

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