Disinflation process still underway; core PCE prices up 0.2% in April

31 May 2024

 

Summary: US core PCE price index up 0.2% in April, in line with expectations; annual rate unchanged at 2.8%; ANZ: provides some confidence US disinflation process still underway; Treasury yields fall; Fed rate-cut expectations firm. 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...

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