Core consumer inflation (PCE) in the US remains at 0.3% in March, within expectations

The core consumer spending price index (PCE) in the United States increased 0.3% in March compared to February, according to data released this Friday (26) by the American Department of Commerce.

As a result, the 12-month core was 2.8%, the same level observed in February.

The monthly indicator came within what was expected by the LSEG consensus of analysts, who expected an increase of 0.3% in March. But the annual variation was above the forecast, which was 2.6% in 12 months.

Core PCE is the Federal Reserve’s (Fed) preferred measure of inflation and excludes changes in food and energy prices, which are considered more volatile.

The full index, which includes these price categories, was 0.3% in the monthly comparison and 2.7% in the annual comparison.

During the month, prices of services rose 0.4% and those of goods increased 0.1%. Food prices fell 0.1% in the period, while energy prices increased 1.2%.

In the annual comparison, services showed an increase of 4.0% and goods rose just 0.1%. While food prices increased by 1.5% in 12 months, energy prices increased by 2.6%.

Personal income and expenses

Americans’ personal income grew 0.5% in the month (equivalent to US$122.0 billion). Disposable personal income (DPI) – which takes into account current personal taxes – increased by US$104.0 billion (0.5%).

Personal spending, which is the sum of personal consumption expenditures (PCE) and interest and transfer payments, increased by US$172.1 billion (0.9%) and consumer spending grew by US$160.9 billion (0.8%) in March.

Personal savings were $671.0 billion and the personal savings rate – personal savings as a percentage of disposable personal income – was 3.2% in March.