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The favorite inflation measure of the Fed, core PCE Price Index, which excludes food and energy, increased 0.4% ahead of consensus 0.3% and up from last month's +0.1%, putting it up 1.8% year-over-year. The PCE Price Index jumped 0.5%, as expected, putting it up 2.3% year-over-year, the most since 2018.


Personal consumption expenditure report for March 2021


The US personal consumption expenditure price index rose 0.5 percent month-over-month in March of 2021, accelerating from a 0.2 percent increase in February. Excluding food and energy, PCE prices edged up 0.4 percent, following a 0.1 percent gain. Year-on-year, the PCE price index advanced 2.3 percent, ; and the core index increased 1.8 percent.

US March PCE +.5% m/m vs +0.5% expected Prior +0.2%

United States Personal Consumption Expenditure Price Index

US March core PCE +1.8% y/y vs +1.8% expected Prior  y/y +1.4%

United States Personal Consumption Expenditure Price Index

US March core PCE +0.4% m/m vs +0.3% expected Prior m/m +0.1%

United States Core Personal Consumption Expenditure Price Index

  • Deflator YoY +2.3% vs +2.3% expected Prior deflator YoY +0.5%
  • Deflator MoM +0.5% vs +0.5% expected Prior MoM deflator +0.2%

The PCE Price Index Excluding Food and Energy, also known as the core PCE price index, is released as part of the monthly Personal Income and Outlays report. The core index makes it easier to see the underlying inflation trend by excluding two categories – food and energy – where prices tend to swing up and down more dramatically and more often than other prices. The core PCE price index is closely watched by the Federal Reserve as it conducts monetary policy.

Source: BSE

From The TradersCommunity News Desk

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