In dollar terms, real PCE in March was right in line with very strong expectations.
Personal Consumption Expenditure (PCE) prices increased by only 1.25% during the 12 months ending January 2011.
Meantime, the latest U.S. personal consumption expenditures (PCE) inflation rate was 0.9 per cent, annualized.
The PCE price index showed that spending actually decreased 0.1% when adjusted to remove price changes from inflation.
FORBES: Consumer Spending Hit Speedbump In May: Markets Responding With Resilience
The Fed has the core PCE deflator at 2.25% to 2.5% year-over-year in the fourth quarter of 2006.
March real PCE growth was below consensus (0.3% instead of 0.5% ) entirely because January and February were revised up.
The core PCE price index, which excludes food and energy prices, increased one point more than it did in April, moving up 0.3%.
FORBES: Consumer Spending Hit Speedbump In May: Markets Responding With Resilience
Excluding the prices of food and energy, PCE price inflation ran at a 2.1 percent rate in 2007, down a bit from 2006.
The second quarter advanced GDP price index rose 1.1%, well short of the 2.4% expectation, while core PCE jumped 2.1%, versus the 2.0% outlook.
All told, over the four quarters of 2007, the price index for personal consumption expenditures (PCE) increased 3.4 percent, up from 1.9 percent during 2006.
Recently, the CPI has been running lower than the PCE because it gives a much higher weight to a gauge of housing prices that is merely an estimate.
We think low real interest rates, a weak dollar and plentiful U.S. and global liquidity argue that core inflation (both core CPI and the core PCE deflator) will continue rising, not subside.
The device, which resembles the sawed-off head of a driver golf club, uses its Plant Care Engine (or PCE as its literature so abbreviates) to detect such important plant growth criteria as water, fertilizer, humidity, temperature and light.
ENGADGET: Switched On: The fork, the ficus and the flandoodle
应用推荐