US Core PCE inflation rises to 2.8% in February vs. 2.7% forecast

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The trend is not good in the numbers released yesterday. This likely contributed to another large, financial markets drop yesterday.
 

Source: https://www.fxstreet.com/news/us-core-pce-inflation-expected-to-remain-sticky-reinforcing-federal-reserves-cautious-stance-on-rate-cuts-202503280600
 

Excerpt: The core PCE Price Index, which excludes volatile food and energy prices, increased 2.8% on a yearly basis in February, above analysts' forecast and January's increase of 2.7%. On a monthly basis, the PCE Price Index and the core PCE Price Index rose 0.3% and 0.4%, respectively.

 

Source: https://think.ing.com/snaps/us-stagflation-fears-rise-ahead-of-tariff-hit/

 

Excerpt: US stagflation fears rise ahead of tariff hit. 

Hot inflation and cooling consumer spending are trends that are likely to be intensified by

President Trump's aggressive moves on tariffs and government spending cuts. Stagflation fears are rising and will constrain the Fed's ability to cut rates further.

 

Well today's US data is only inflaming stagflation fears. The Federal Reserve’s favoured inflation measure, the core PCE deflator, has come in hotter than predicted at 0.4% month-on-month while real personal spending comes in softer at just +0.1% MoM and January’s contraction is worse than previously thought – revised down to -0.6% MoM from -0.5%.