By Tom Burnett CFA
On April 28, 2023, the Bureau of Economic Analysis announced that the PCE price index rose by 0.1% in March. The two previous readings were an increase of 0.6% in January and 0.3% in February. For the month, prices of goods decreased by 0.2% while prices for services rose by 0.2%. In March, food prices fell by 0.2% and energy prices declined by 3.7%. The PCE price index for the 12 months ending in March rose by 4.2%, following increases of 5.4% in January and 5.1% in February.
The PCE Core readings, excluding food and energy, were an increase of 0.3% in March and February, following an increase of 0.6% in January. The Core increase over the 12-month period ending in March was 4.6%, following increases of 4.7% in both January and February. Over the 12-month period ending in March, food prices rose by 8.0% and energy prices decreased by 9.8%.
Federal Reserve announcements indicate that the PCE price information is a key component of the evaluation of inflation in the US economy.
The Next BEA report on PCE price data will be released on May 26, 2023.