Welcome to Extreme Investor Network, your go-to source for all things finance! Today, we are diving into the latest updates on the Fed’s favorite inflation indicator, the PCE Price Index, which is set to be released by the BEA this morning.
The PCE Price Index differs from the more commonly known Consumer Price Index in that its composition is changed more frequently, allowing it to reflect real-time pricing trends more accurately. In the most recent report through March, PCE inflation was reported at 2.7% year over year, slightly lower than the latest CPI report which had inflation at 3.4% through April. Core PCE, which excludes volatile food and energy prices, stood at 2.8% in the latest month.
Our experts at Extreme Investor Network are forecasting a 2.7% inflation rate for both the headline number and the core reading, indicating minimal changes month to month as the Fed continues to work towards its 2% inflation target. In this current cycle, inflation peaked in summer 2022 and has been gradually decreasing until recently stabilizing.
At Extreme Investor Network, we closely monitor 20 different inflation measures on a monthly basis. On average, these indicators suggest a 2.6% year-over-year increase in prices, up 30 basis points from the previous month. It is important to note that some measures, particularly within the Producer Price Intermediate Goods category, are showing a decline of 5%, potentially signaling a moderation in prices across the inflation spectrum in the coming months.
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Stay tuned to Extreme Investor Network for the latest updates and expert insights on all things finance. Happy investing!