by Wolf Richter
Wolf Street
Core PCE price index jumps MoM by most in 13 months on Non-Housing Services. Recreational Services blow out. Durable Goods continue 6-month trip out of deflation.
The inflation measure released today – the PCE price index favored by the Fed as yardstick for its inflation target – dished up another surprise.
While gasoline prices fell in February from January, and food prices were stable month-to-month after substantial increases in prior months, prices in core services jumped, driven by non-housing services, especially by the ongoing six-month-long red-hot spike in recreational services – the services that consumers want to buy.