Inflation continued to cool in March while personal spending and income were higher than expected, according to the latest data from the Bureau of Economic Analysis.
- Y-O-Y: The PCE price index fell to 4.2% year-over-year in March, down from 5.1% in February and the lowest level since May 2021.
- M-O-M: Prices only increased by 0.1% in March, down from 0.3% in February and the lowest month-over-month increase since July 2021.
The Core. Core PCE surpassed the topline number as prices for all items minus food and energy rose 0.3% from February for a year-over-year total of 4.6%, down from 4.7% in February.
- Goods prices fell 0.2% from February
Incomes Keep Rising. Personal incomes continued to climb in March rising to $22.71T, up 0.3% From February and up 6.0% from March 2023.
- Income rose more than expected as economists thought income would rise by a smaller 0.2%.
- Personal savings rose 5% to $1 trillion in March.
Spending Holds. Personal spending held from last month at $18.7 trillion, basically unchanged from last month but still up 8% from March 2023.