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, with cars, clothing and financial services also keeping a lid on inflation. The core PCE gauge is running at 1.1 percent versus 1.99 percent in February 2012.
weight in core PCE
Note: Excludes net expenditures abroad and net foreign travel.
Source: Bloomberg calculations based on Bureau of Economic Analysis data
GRAPHIC: CHLOE WHITEAKER, DAVID INGOLD & JULIAN BURGESS / BLOOMBERG VISUAL DATA; ILAN KOLET & MICHELLE JAMRISKO / BLOOMBERG NEWS