US Feb Core PCE Up 3% YoY, Meeting Market Expectations

According to US financial media CNBC, the annual growth rate of the February core PCE (Personal Consumption Expenditures) price index, which excludes volatile items like food and energy, fell by 0.1 percentage points from the previous month; the overall PCE annual growth rate remained unchanged at 2.8%, meeting market expectations. Compared to January, both the core and overall PCE in February rose by 0.4%, which was also in line with market expectations. The Federal Reserve (Fed) uses PCE data as the primary indicator for judging and forecasting inflation, considering core PCE a better reflection of long-term price trends. Meanwhile, according to Reuters, the number of initial claims for unemployment benefits in the US rose mildly last week, showing no signs of deterioration in the labor market and remaining at a low level compared to historical data. This may give the Fed room to keep interest rates unchanged while keeping a close eye on the economic impact of the Iran war. The US Department of Labor announced today that for the week ending April 4, initial jobless claims increased by 16,000 to a seasonally adjusted 219,000, exceeding the 210,000 estimated by economists polled by Reuters. Reports indicate that a low layoff rate is supporting the labor market. So far, there is no sign that US employers are resorting to layoffs to cope with the fuel price shock caused by the US-Iran war. (Compiled by: Hong Qi-yuan) 1150409