The Federal Reserve’s preferred inflation measure slowed sharply in March, spotlighting the further stabilization of inflation in the first three months of 2025.
According to the Bureau of Economic Analysis, the headline annual personal consumption expenditure (PCE) price index eased to 2.3 percent, down from an upwardly revised 2.7 percent in February.
Core PCE, which removes the volatile energy and food categories, slowed sharply to 2.6 percent last month, in line with market estimates.
Economists’ consensus forecast signaled 2.2 percent and 2.6 percent readings, respectively.
From February to March, PCE and core PCE inflation were flat.
Prices for goods declined 0.5 percent after a 0.2 percent jump in the previous month. Services inflation edged up 0.2 percent, down from a 0.5 percent increase in February….