Economic Analysis of April PCE Index

SOURCE www.breitbart.com
White House Council of Economic Advisers Chair Jared Bernstein discusses the April Personal Consumption Expenditures index, mentioning that the forces of disinflation are still in place despite a temporary stall in Q1. The overall PCE rate remains steady at 2.7%, with core PCE at 2.8%.

Key Points

  • Consensus that the stall in disinflation in Q1 was likely due to anomalous factors
  • Month-over-month rates for PCE index detailed

Pros

  • Forces of disinflation that were beneficial in the second half of the year are still present
  • Overall and core PCE rates holding steady

Cons

  • Need more data to confirm the forecast