Core PCE Inflation
The core PCE (personal consumption expenditures) price index, the Federal Reserve's primary inflation measure, increased by 3.7% annualized in the first quarter, exceeding the 3.4% forecast. This follows two consecutive quarters of moderate 2% annualized inflation, in line with the Fed's target.
The headline PCE price index, which includes food and energy prices, rose by 3.4% in the first quarter, up from 1.8% in the fourth quarter.
The strong quarterly core PCE inflation data signals a potential increase in the March inflation report, which will detail monthly increases in the core PCE price index. Wall Street anticipated a 0.3% increase in March, resulting in an annual core PCE inflation rate of 2.7%.
However, the 3.7% quarterly increase suggests a higher reading for March and possible revisions to data for January and February.
GDP Growth
The U.S. economy expanded by 1.6% in the first quarter, falling short of the p