The inflation numbers in the March PCE report

  • Prior was +1.8% y/y
  • PCE core -0.1% m/m vs -0.1% exp
  • Prior m/m core reading was +0.2%
  • PCE deflator +1.8% vs +1.9% expected
  • Prior PCE deflator +2.1% y/y

The Fed's preferred measure of inflation showed prices declining and the year-over-year reading receding. Headline inflation was a tough softer than expected.

Digging deeper:

  • Goods prices +0.9% y/y
  • Durable goods -2.4% y/y
  • Nondurables +2.6% y/y
  • Services +2.3% y/y
  • Food prices -0.7% y/y
  • Energy prices +13.2% y/y