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)