US PCE rises to 2.7% in March, ahead of estimates
The US personal consumption expenditure rate rose to 2.7% in March, according to the Bureau of Economic Analysis, up from 2.5% in February and higher than the 2.6% expected by economists, suggesting that inflationary headwinds were still building.
However, core PCE, the Federal Reserve's preferred inflationary barometer, which strips out volatile food and energy, was unchanged at 2.8% per year.
On a monthly basis, both the PCE price index and the core PCE price index increased by 0.3% during March, which may lead central bankers to hold off from lowering interest rates until later in 2024 ahead of its policy meeting next Wednesday, where it was widely expected to leave borrowing costs unchanged.
The personal saving rate fell to 3.2%, down 0.4 percentage points from February, while personal spending rose 0.8% month-on-month and personal income increased 0.5%.
On an annualised basis, services prices were up 4%, while goods prices increased just 0.1%, food was up 1.5%, and energy prices rose 2.6%.
Reporting by Iain Gilbert at Sharecast.com