US PCE Inflation to Hold Steady, Core to Inch Higher

2025-03-28 07:58 By Joana Taborda 1 min. read

The US Personal Consumption Expenditures (PCE) price index is expected to have risen by 0.3% month-over-month in February 2025, maintaining the same pace as the previous two months.

Similarly, the core PCE index, which excludes volatile food and energy prices, is also projected to increase by 0.3%, in line with January’s reading.

On a year-over-year basis, headline PCE inflation is anticipated to hold steady at 2.5%, while core PCE inflation likely inched up to 2.7% from 2.6%.

During its March meeting, the Federal Reserve raised its PCE inflation forecast for 2025 to 2.7% from 2.5% and for 2026 to 2.2% from 2.1%, while maintaining the 2027 forecast at 2%.



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