Why Has Core Inflation Slowed?
A weakening in price growth over the past two years can largely be blamed on muted costs for health care, cars, clothing and financial services. Core PCE inflation running at 1.09 percent owes much of its small climb to housing-related prices. The rise in those costs, including rent, has begun to slow, keeping a lid on inflation.
Tracking Core Personal Consumption Expenditures
Core PCE measures changes in the price of consumer goods and services, excluding food and energy costs.
Source: Bloomberg calculations based on Bureau of Economic Analysis data
GRAPHIC: CHLOE WHITEAKER & DAVID INGOLD / BLOOMBERG VISUAL DATA; ILAN KOLET & MICHELLE JAMRISKO / BLOOMBERG NEWS