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If interest rates fall, expect savings rates to do the same.
The January PCE report showed inflation easing further but still significant. Moderation in spending could also continue, analysts say.
It’s usually called a measure of wholesale prices, but it can also be a leading indicator that shows where consumer prices are headed.
Supermarkets and restaurants business relies on selling food. So why are prices rising more in the latter?
Rising costs for prescriptions and hospital services were felt in latest PCE report, though health inflation has been mild in the past year.
The consumer price index and the personal consumption expenditures price index measure the changing cost of different baskets of goods.
Goods inflation has slowed down a lot over the last year, thanks in part to higher interest rates. But the Federal Reserve is having a harder time slowing services inflation.
Businesses have been finding ways to absorb wage increases without charging customers more.
So far, price increases have not driven customers away. But there’s evidence that is starting to change.
The personal consumption expenditures price index, better known as the PCE, tracks what we paid for goods and services in the previous month.