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Core PCE Q1 Revisions Land Earlier In The Qtr, Supercore Services Soften

US DATA
  • Core PCE came in close to prior expectations for March at 0.28% M/M (cons 0.3) with all of yesterday's Q1 upside surprise focused on Jan (+0.56 after +0.52% M/M) and Feb (+0.35 after +0.30% M/M).
  • It’s technically the softest core PCE print since Nov’22 but clearly remains far stronger than the monthly rate consistent with the 2% target.
  • Services eased from 0.38% to 0.23% M/M whilst Bloomberg's calculation of non-housing core services fell from 0.35% to 0.24% M/M for its softest since Jul'22.

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