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.

Updated WEDNESDAY, APRIL 9, 2014

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Tracking Core Personal Consumption Expenditures
Core PCE measures changes in the price of consumer goods and services, excluding food and energy costs.
Core PCE sectors
Durable goods
Non-durable goods
Services
Sized according to
weight in core PCE
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Contribution to two-year change in core PCE, percentage point change

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