US core PCE undershoots expectations, annual rate still above 5%

31 March 2022

 

Summary: US Fed’sfavoured inflation measure up 0.4% in February; below expectations; annual rate accelerates from 5.2% to 5.4%; 2-year Treasury yield up, longer-term yields down; expectations of Fed rate rises 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...

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