US: Annual core PCE Price Index comes in at 1.6% in March vs 1.7% expected


The data published by the U.S. Bureau of Economic Analysis today showed that the core Personal Consumption Expenditure (PCE) Price Index came in at 1.6% on a yearly basis in March, falling short of the market expectation of 1.7% and moving further away from the Fed's 2% inflation target. The market reaction to the data was muted with the US Dollar Index staying flat on a daily basis a little above the 98 mark.

Key takeaways from the press release

  • February: The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
    • Personal income increased $35.6 billion (0.2 percent) in February.
    • Disposable personal income increased $23.0 billion (0.1 percent), and personal consumption expenditures increased $11.7 billion (0.1 percent).
  • March: The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased less than 0.1 percent.
    • Personal income increased $11.4 billion (0.1 percent) in March according to estimates released today by the Bureau of Economic Analysis.
    • Disposable personal income (DPI) increased $0.6 billion, (less than 0.1 percent) and personal consumption expenditures (PCE) increased $123.5 billion (0.9 percent).

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