Inflation Is in the Revisions? What Stands Out Once Again in the PCE Price Index? Sharp Up-Revisions of Prior Month’s Inflation

by Wolf Richter
Wolf Street

Up-revisions pushed the 12-month core PCE price index for February to +3.0%, and the 6-month index to +3.4%, worst since July 2023. But March was benign?

The inflation measure released today for March – the PCE price index favored by the Fed as yardstick for its inflation target – has a salient feature that it had many times before: Sharp up-revisions of the prior month’s data, this time for February, triggered by hot up-revisions in core services inflation.

The February month-to-month data were revised sharply higher today, driven by core services which dominates the overall index.

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