Both the headline and core PCE is increasing higher than the feds target of 2% annually. PCE without food and energy increased 2.8% from January 2022 to January 2023. It is believed that these price rises are due to the consumers shifting to from goods to services. The stock market barely reacted as only futures had a noticeable shift. The jobless claims totaled at 215,000 towards the end of February which was an increase from the previous measure. The Fed is still continuing to battle the inflation spike from 2022, and it is expected that they will reverse them. As the increasing fear of the CPI number loom, the Fed will continue to focus on what they deem to be the better metric, the PCE. They will do this because they believe that it is more specific to what consumers actual purchase.
https://www.cnbc.com/2024/02/29/pce-inflation-january-2023-.html
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