US Fed’s favoured inflation measure remains elevated

Higher prices at the fuel pump and a bump in service sector inflation all added to inflation pressure, writes KPMG US Chief Economist Diane Swonk.

The United States’ (US) personal consumption expenditure (PCE) index rose 0.3 percent in February, slightly slower than the revised 0.4 percent pace of January. The overall PCE edged up slightly to 2.5 percent from a year ago compared to 2.4 percent in January. The three- and six-month annualised paces, which better measure momentum, were more worrisome for the Federal Reserve. The three-month moving average rose at a 3.4 percent annualised rate in February, well above the 2 percent pace o...

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Authors: Diane Swonk

Published Date: 03 April 2024