Fed’s Favorite Inflation Indicator Re-Accelerates In February As Savings Rate Soars
The Fed’s favorite inflation indicator – Core PCE – printed hotter than expected in February, rising 0.4% MoM, bring prices up 2.8% YoY…
Source: Bloomberg
Durable Goods & Services costs were the big driver of the reacceleration…
Source: Bloomberg
Disappointingly sticky is the phrase that comes to mind, while the headline PCE rose 0.3% MoM as expected with the YoY price change slowing modestly…
Source: Bloomberg
Under the hood, Services costs dominated the headline gains…
Source: Bloomberg
Perhaps most troubling was the sizable rebound in so-called SuperCore PCE (Services Ex Shelter)…
Source: Bloomberg
With Housing and Non-Profits seeing prices surge MoM…
Source: Bloomberg
Meanwhile, as prices rose, so did personal income, jumping 0.8% MoM – the most since Jan 2024, considerably outpacing the 0.4% rise in personal spending…
Source: Bloomberg
The income to spending differential sent the savings rate to its highest since June 2024
Source: Bloomberg
Finally, is this the start of the 70s-esque rebound in inflation?
Source: Bloomberg
Does this look like it’s going to be ‘transitory’ again?
Tyler Durden
Fri, 03/28/2025 – 08:50

