Summary:
Inflation did not slow down in February, with core PCE up 2.8% year-on-year. Goods prices rose 0.2%, led by entertainment goods and automobile prices.
PCE price index Mar
30/4/2025 (Wed)
Previous: 2.8% Forecast: 2.6%
Inflation showed few signs of letting up in February while consumer spending posted a smaller-than-projected increase. Core PCE price index rose 2.8% from a year ago, higher than the 2.7% estimate.
Good prices increased 0.2%, led by recreational goods and vehicles. They have been lagging behind service costs in growth rate for years, but sweeping tariffs Trump has imposed may well narrow the gap.
Economists tend to consider tariffs as one-off events that do not feed through to longer-lasting inflation pressures, but the potential for an aggressive global trade war are changing the stakes.
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