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Core PCE comes in below forecast, but market reaction is muted

Mortgage News Daily said the unrounded core PCE print and a methodology-driven revision left inflation broadly flat, with supercore notably higher.

Reported · Written up by our desk · Inflation

Mortgage News Daily reports that core PCE rose 0.2 in the latest reading, compared with a 0.3 forecast, and that bonds rallied modestly in response.

The outlet cautioned that the unrounded core PCE figure was 0.247, which it said was about as high as it could be without rounding to 0.3, while core annual PCE was 3.0 and was flat versus a downward revision from 3.3.

It added that the downgrade to the prior-year core annual PCE was largely tied to changes in PCE methodology rather than new data showing lower prices.

Mortgage News Daily also said inflation looked fairly flat overall, and it noted that supercore was noticeably higher, alongside stronger ADP and GDP numbers, leaving bonds with limited reason to move higher.

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