US PCE Inflation Progress Stalls While Consumer Spending Remains Strong

The PCE inflation data favored by the Federal Reserve showed its first stagnation in nearly a year in March, with strong consumer spending providing a welcome relief before the market anticipated tariffs would generally drive up prices. Data released by the U.S. Bureau of Economic Analysis indicated that the PCE index has remained stagnant since February. Excluding food and energy, the core PCE also remained flat, marking the mildest level in nearly five years. After adjusting for inflation, the actual personal consumption expenditure monthly rate in March increased by 0.7%, with the previous month's data revised upwards, indicating that households made significant expenditures to avoid new tariffs. These data conclude the first quarter, during which the U.S. economy experienced its first contraction since 2022 due to a surge in imports before tariffs and moderate consumer spending. (Jin10)