FX.co ★ US PCE Inflation Slows as Expected

In March 2025, the US personal consumption expenditure (PCE) price index remained steady from the previous month, marking the lowest point in ten months after witnessing a 0.4% increase in both January and February, as anticipated. Prices for goods experienced a decline of 0.5%, following a modest 0.2% rise in February, while service prices posted a 0.2% increase, down from a 0.5% growth in the prior month. The core PCE index, which excludes the volatile categories of food and energy, also remained unchanged, despite expectations of a 0.1% rise. In separate developments, food prices recorded a 0.5% increase against a previously stable reading, whereas the prices for energy-related goods and services saw a significant drop of 2.7%, compared to a predicted 0.1% change. Conclusively, the annual PCE rate fell to 2.3%, the lowest in five months, and the annual core PCE inflation dipped to 2.6%.