The Personal Consumption Expenditures Price Index rises 2.5%

Rising PCE can have a negative impact on the economy as "it may lead to a rise in interest rates and a rise in local currency; on the other hand, during recession, a rise in CPI may lead to a deepened recession," according to 'Investing.com."

Published by

Verónica Silveri Pazos

30 de marzo, 2024

Topics:

inflation

The Department of Commerce's Bureau of Economic Analysis released its "Personal Income and Expenditures, February 2024" report. The analysis shows that the Personal Consumption Expenditure Price Index (PCE) rose 2.5% in the last 12 months (until February of this year).

The PCE is an "indicator of the average increase in the prices for all domestic personal consumption." According to Investing.com, this may hurt the economy since, "it may lead to a rise in interest rates and a rise in local currency; on the other hand, during recession, a rise in CPI may lead to a deepened recession and therefore a fall of the local currency."

The PCE core price index, a metric that excludes food and energy costs, rose 2.8%:

From the same month one year ago, the PCE price index for February increased by 2.5 percent (...) Prices of services increased by 3.8 percent and prices for goods decreased 0.2 percent (... ...) Food prices increased 1.3 percent and energy prices decreased 2.3 percent. Excluding food and energy, the PCE price index increased 2.8 percent from one year ago.

pi0224 by Veronica Silveri

Monthly index also on the rise

The PCE index rose 0.3% compared to January. Excluding food and energy, it increased by another 0.3%:

The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.3 percent. Real DPI decreased 0.1 percent in February and real PCE increased 0.4 percent. Goods increased 0.1 percent and services by 0.6 percent.