US personal income rose 0.6% mom in March, beating expectations of 0.3% mom, signaling stronger household income growth. At the same time, personal consumption expenditures increased 0.9% mom, in line with expectations, indicating that consumer demand remains resilient despite rising price pressures.
The inflation picture, however, showed a clear pickup. The PCE price index rose 0.7% mom, while core PCE increased 0.3% mom, both matching expectations.
On an annual basis, headline PCE accelerated from 2.8% yoy to 3.5% yoy, while core PCE edged up from 3.0% yoy to 3.2% yoy. The data suggests that price pressures are re-intensifying, even as monthly core readings remain relatively contained.
| Indicator | February | March |
|---|---|---|
| PCE Price Index (MoM) | — | 0.7% |
| Core PCE (MoM) | — | 0.3% |
| PCE Price Index (YoY) | 2.8% | 3.5% |
| Core PCE (YoY) | 3.0% | 3.2% |
