US PCE inflation picks up in February; consumer spending solid - Reuters
Why it matters: Higher inflation could push the Fed to keep rates elevated, affecting borrowers and investors through Q3 2024.
- U.S. PCE price index rose to a 3% annual rate in February, the Fed’s preferred inflation gauge (Reuters).
- Consumer spending remained solid, supporting the economy despite higher inflation (Reuters).
- CPI report is expected to show inflation near 2024‑level rates as gas prices surge (CNBC).
- Wage gains have outpaced inflation for almost three years, cushioning household budgets (CBS News).
- War with Iran looms, adding geopolitical risk to the inflation outlook (Reuters).
February’s personal consumption expenditures (PCE) price index nudged up to 3% annual inflation, while consumer spending stayed robust. A looming Iran conflict and soaring gas prices add pressure, yet wages have continued to outpace price gains for nearly three years.
