Inflation did not slow in March, with core personal consumption expenditures price index excluding food and energy being up 2.8% from a year ago. This is the same figure that was seen in February and is higher than the 2.7% estimate given by Dow Jones. Both PCE and core PCE increased 0.3% equaling the increase from February. Markets did not show a reaction to this as Wall Street opened higher and the probability of two rates cuts being seen this year increased to 44% according to the CME Group's FedWatch gauge.
Consumers increased personal spending by 0.8% on the month and the personal savings rate fell to 3.2% which is 2% lower than last year. This indicates households are saving less to keep up with their level of expenditure. It is believed with these reports that the Fed will hold interest rates high at least through the summer unless there are significant changes.
Source - https://www.cnbc.com/2024/04/26/pce-inflation-march-2024-key-fed-inflation-measure-rose-2point8percent.html
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