Inflation & Prices
Squint Your Eyes and US Inflation Data Actually Looks Worse
- Core PCE picked up in March when drawn to two decimal places
- Compounding effects are large for year-over-year figures
This article is for subscribers only.
To the naked eye, a key US inflation metric held steady in March. But look a little closer at two or three decimal places and you’ll see that it actually picked up.
The difference matters because the personal consumption expenditures price index is an inflation gauge favored by Federal Reserve policymakers — one that ultimately will shape their views on when to cut interest rates.