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US core PCE inflation rises in line with forecasts

Personal Consumption Expenditures inflation remains too ‘sticky’ for Fed to sanction immediate rate cuts.

26 April 2024

US core PCE inflation rose in line with forecasts in March at a 0.3% clip. Over the year this inflation measure, the Federal Reserve’s (Fed) preferred measure, stands at 2.8%. This is a level that hardly augers in early rate cuts and one should expect that the Fed will hold rates where they are when they convene next week for their committee meeting. The good news to this persistent inflation report is that it was no higher than markets had forecast (which has been an issue this year) so markets are unlikely to pile on the bear case in the short term.

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Charles Hepworth

Investment Director
My Insights

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