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The favorite inflation measure of the Fed, core PCE Price Index, which excludes food and energy, increased 3.1% ahead of consensus 2.9%,the most since 2018 and up from last month's +1.8% year-over-year. The PCE Price Index jumped 0.7% m/m, over 0.6% expected, up from.4% prior.

 Warehouse

Personal consumption expenditure report for April 2021

The personal consumption expenditure price index in the United States rose 0.6 percent month-over-month in April of 2021, the same as in the previous month. Excluding food and energy, PCE prices climbed 0.7 percent. Year-on-year, the PCE price index advanced 3.6 percent, and the core index jumped 3.1 percent. points in March of 2021

Highlights

 

US April PCE MoM +0.7% vs +0.6% expected Prior MoM +0.4%

 

US April core PCE +3.1% y/y vs +2.9% expected Prior +1.8%

 

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

Deflators

  •  Deflator YoY +3.6% vs +3.5% expected Prior deflator YoY +2.4%
  • Deflator MoM +0.6% vs +0.6% expected Prior MoM deflator +0.5% (revised to +0.6%)

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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