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US Core PCE Data for the First Quarter: Core Inflation Slightly Decreased, Overall PCE Increased
According to the latest release, the US Personal Consumption Expenditures (PCE) price index for the first quarter shows interesting dynamics. The overall PCE rate for the period is recorded at 3.7% year-over-year, an increase from the previous period’s level of 3.6%.
Meanwhile, the core PCE price index—excluding volatile items such as energy and food—was confirmed at 3.5% for the first quarter. This figure is slightly higher than market expectations, which projected an increase of 3.4%, but aligns with the previous reading of 3.40%.
The overall PCE growth of 3.7% reflects ongoing inflation pressures across various consumer spending segments. This data serves as an important indicator for policymakers in evaluating inflation trajectories and determining future monetary policy steps. The core PCE reading remaining above initial projections indicates that fundamental inflation still maintains momentum, albeit at a moderate level.