Personal Consumption Expenditure Shows Low Inflation

By
Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

 

Inflation remained tame in February as the markets look for any signs of higher prices. The annual February Core PCE slipped to 1.4% from 1.5% in January while the monthly rate rose 0.1%. The runaway inflation fears could be somewhat over-hyped given that so many Americans are still out of work. This is one reason why inflation may not be a huge problem anytime soon. The Fed continues to pound the table that any rise in inflation will be transitory or temporary. Personal Spending fell 1% while Personal Incomes dropped by 7.1% which was expected.

Americans are feeling more secure about the U.S. economy and the job market at the end of March. The final March Consumer Sentiment Index rose to 84.6 from 76.8 in February and was the best reading since the 89.1 seen in March 2020. Also, the direct checks and better than anticipated vaccine progress. The positive recent economic data and jobs numbers clearly points towards robust increases in consumer spending in the coming months.

 

Inflation tame in February.Personal Spending declines. Consumer Sentiment rises.

Comments (1)

Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

It's good that inflation is staying in the range set by the Fed. Thanks for the update Jeff!

Mar 27, 2021 02:02 PM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?