Core PCE Price Index Rises in March

Measure of Inflation Shows Modest Increase

Personal Consumption Expenditures Excluding Food and Energy Up 12.62 Points

The Core PCE Price Index, a closely watched measure of inflation, increased to 121.62 points in March, up from 121.23 points in February. The Personal Consumption Expenditures (PCE) Price Index, excluding food and energy, is released monthly by the Bureau of Economic Analysis as part of the Personal Income and Outlays report.

The Core PCE Price Index is considered a more reliable measure of underlying inflation than the headline PCE Price Index, as it excludes volatile food and energy prices. The Federal Reserve uses the Core PCE Price Index as its primary measure of inflation when setting interest rates.

The increase in the Core PCE Price Index in March was driven by a rise in prices for goods and services. The index for goods increased by 1.2%, while the index for services increased by 0.6%.

The increase in the Core PCE Price Index is a sign that inflation is still a concern for the Federal Reserve. The Fed is expected to continue raising interest rates in an effort to bring inflation down to its target of 2%.