New federal inflation statistics reveal that inflation remains high even after a series of Federal Reserve Rate increases. The Personal Consumption Expenditure (PCE) index, a leading inflation indicator for the Federal Reserve, reported by the Bureau of Economic Analysis, experienced a 0.3% rise in March.
Compared to March of the previous year, the PCE price index saw a 4.2% increase, with a 1.6% increase in goods prices, a 5.5% increase in service prices, an 8.0% increase in food prices, and a 9.8% decrease in energy prices. The PCE price index, excluding food and energy, rose 4.6% from a year ago.
Although inflation has slowed from its peak during the Biden administration, economists point out that it remains high despite the Federal Reserve’s measures. Economist Peter Schiff tweeted that the continuous upticks in the core PCE provide further proof that the Fed’s rate hikes are insufficient to bring inflation back to 2% and, without significant reductions in government spending, may contribute to rising consumer prices.