Inflation Continues to Cool in March

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.