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US Core PCE Inflation Has Been Slowing Down
Core inflation slowed substantially in February and March to less than 0.3% a month (.029%). The core personal consumption expenditures (PCE) price index rose more slowly this March than it did a year ago (as shown by the blue bars in the graph). The backward‐looking year‐to‐year price change nonetheless still appeared misleadingly high this March (5.2%) because of rapid price increases last year – during the second and fourth quarters. The red line in the graph projects that if the February to March monthly pace continues for the next three months, the year‐to‐year increase in core PCE ... (full story)