Mike Konczal: U.S. PCE inflation accelerates with seven months of weak data

Mike Konczal: U.S. PCE inflation accelerates with seven months of weak data
Seven months of accelerating U.S. inflation

U.S. Personal Consumption Expenditures (PCE) inflation has shown seven consecutive months of weak results, with the pace now accelerating, according to Mike Konczal. He notes there is a lack of appreciation for the reversal in inflation progress since 2024 and suggests the Federal Reserve was already facing significant challenges before the onset of the war with Iran.

Konczal references an upcoming linked post for further analysis of these inflation trends and their implications for monetary policymakers.

These shifts in inflation dynamics bring renewed attention to long-standing debates over the reliability of economic indicators. Konczal has previously highlighted the Federal Reserve’s decision to elevate the importance of the PCE measure over CPI, a change that continues to influence policy deliberations. Additionally, questions surrounding the classification of market-based core non-housing PCE services remain central as policymakers assess the trajectory of price pressures in the current environment.

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