## Core PCE Inflation Stalls in March The US Bureau of Economic Analysis (BEA) reported that the core Personal Consumption Expenditures (PCE) price index saw no growth month-over-month in March, coming in at 0%. This figure fell short of the anticipated 0.1% increase, suggesting a potential cooling in inflationary pressures. ## Year-Over-Year PCE Matches Expectations Compared to March of the previous year, the core PCE price index increased by 2.6%, aligning perfectly with expert projections. This indicates that while monthly inflation has slowed, the overall trend remains above the Federal Reserve's target. ## Why Core PCE Matters to the Fed The core PCE price index is closely monitored by the Federal Reserve as their preferred gauge of inflation. By excluding volatile food and energy prices, it provides a clearer picture of underlying inflation trends, influencing the Fed's monetary policy decisions and interest rate adjustments. ```