Core PCE Inflation Hits 3.1%, Worst in 2 Years, in Unique Twist Blows way past CPI Inflation. Driven by Core Services

Energy spike is still to come. The Fed needs to pay attention.

13 Mar, 12:43 — 13 Mar, 18:38

Why this matters

The Core PCE is the Federal Reserve's preferred inflation gauge, making its significant rise to a two-year high a critical indicator for future monetary policy decisions. This acceleration suggests persistent inflationary pressures, particularly in the services sector, which could influence interest rate hikes and economic stability.

Key entitiesFederal Reserve

The Story

What 3 sources agree on, dispute, and miss

What sources agree on

Core PCE inflation reached 3.1%
This is the highest Core PCE inflation in two years
Core PCE inflation has surpassed CPI inflation
Core services are a primary driver of the inflation increase

Key claims4 agreed · 1 unverified

✓

Core PCE inflation hit 3.1%

agreed·wolf-streetil-sole-24-orezerohedge

✓

This is the worst Core PCE inflation in 2 years

agreed·wolf-streetzerohedge

✓

Core PCE inflation blew past CPI inflation

agreed·wolf-street

✓

The increase was driven by core services

agreed·wolf-street

The savings rate is at its highest in 6 months

unverified·zerohedge

Coverage gaps

The potential for an upcoming energy spike and its implications for the Fed

Reportedwolf-street

Missingil-sole-24-orezerohedge

The increase in the savings rate to a six-month high

Reportedzerohedge

Missingwolf-streetil-sole-24-ore

The Story

Analyzing sources…

Source Diversity

Moderate (42/100)

3 sources25/33

Spectrum spread— 2/5 buckets covered8/33

Far L

Left

Center

Right2

Right (2)

wolf-streetil-sole-24-ore

Far R1

Far Right (1)

zerohedge

Geographic diversity— 2 regions9/34

US2Italy1

Sources

Showing 2 of 3 sources

zerohedgeLow56d ago

Savings Rate Highest In 6 Months As Fed's Favorite Inflation Indicator Rises Near 2-Year High

Savings Rate Highest In 6 Months As Fed's Favorite Inflation Indicator Rises Near 2-Year High The Fed's favorite inflation indicator - Core PCE (a measure of price changes in consumer goods and services that excludes volatile food and energy costs) - rose o.4% MoM in January (in line with expectations) with YoY rising by 3.1% (as expected), slightly higher than the 3.0% in December... Source Bloomberg That is the highest YoY Core PCE since March 2024. The headline PCE rose 0....

By Tyler Durden

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wolf-streetMixed55d ago