Summary

• The PCE price index, which the Fed favors for its inflation yardstick, spiked by 0.66% in March from February (+8.3% annualized), the worst spike since mid-2022 at the peak of the inflation surge.
• The energy PCE price index exploded by a historic 11.6% in March from February (+272% annualized).
• Core services, which account for about 60% of the PCE price index, jumped by 0.32% in March from February (+3.9% annualized).
• Food prices dipped by 0.1% in March from February (-1.7% annualized), after three months in a row of substantial increases.

The 6-month core services PCE inflation index, accelerating since August, hit 3.7% annualized. Chip prices and software wreak havoc amid consumer electronics.

The PCE price index, which the Fed favors for its inflation yardstick, spiked by 0.66% in March from

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