Today’s personal income and outlays report confirmed that inflation remained very high in February, of course. Core PCE prices increased 0.35% in February, which corresponds to an annualized rate of over 4%. But that still represents a decent moderation compared to the previous four months, each of which saw an increase of 0.5%. It was a somewhat similar story for the trimmed mean: Though 0.33% in February is still a very high rate, it’s a big step down from last month’s 0.52% print. Overall, constructive, but still worrying.
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