US PCE inflation data for February came in largely in with notable surprises. Headline PCE rose 0.3% mom and held steady at 2.5% yoy, both matched expectations. However, core PCE, excluding food and energy, rose by 0.4% mom, slightly hotter than expected 0.3% mom. That pushed , pushing the annual core PCE rate up to 2.8% from 2.7%, also above forecasts.
On the household side, personal income surged by 0.8% mom, significantly outpacing expectations of 0.4% mom, reflecting strong wage growth and robust labor market. But personal spending only rose 0.4% mom, slightly below forecasts of 0.5% mom, hinting at a more measured pace of consumption.
