Breibart Business Digest: The February PCE Inflation Report Is Better Than It Looks

Underlying Inflation Falls to Lowest Levels in Five Years

The Bureau of Economic Analysis reported Wednesday that the personal consumption expenditures price index rose 0.4 percent in February, a pickup from January’s 0.3 percent. Goods prices jumped 0.7 percent, led by a 1.1 percent surge in durables. Recreational goods and vehicles were up 2.2 percent. On the surface, this looks like a troubling inflation report that should give the Federal Reserve pause.

But look beneath the surface, and a very different picture emerges. Measures designed to capture the underlying trend in inflation — the ones that strip out the noise of a few categories…

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