Core PCE price index up 0.3% in Feb; annual rate slows to 2.8%

29 March 2024

 

Summary: US core PCE price index up 0.3% in February, in line with expectations; annual rate slows to 2.8%; Treasury yields rise; Fed rate-cut expectations soften. One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at the time of 2.0% in mid-2018, the annual rate then hovered in a range between 1.8% and...

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