**MNI DATA IMPACT:US March Core PCE Prices Flat; Y/Y +1.6%>

By Kevin Kastner, Harrison Clarke and Shikha Dave

     WASHINGTON (MNI) - The core PCE price index was flat in March, 

below the 0.1% gain expected by both a Bloomberg survey and an MNI 

survey, data released Monday by the Commerce Department showed. 

     The core PCE price index was up 1.6% year/year in March, a slightly 

slower pace than the 1.7% year/year gain now reported in February, and 

the smallest year/year gain since January 2018. The slowdown in March 

core prices keeps the rate just below the 2% target set by the Federal 

Reserve. 

     Here are some of the key factors from the data release on Monday: 

     - Personal income was up 0.1% in March, below the 0.4% gain 

expected by both the Bloomberg consensus and the MNI survey. Personal 

income was unrevised from the 0.2% gain in February. Wages and salaries 

were up 0.4%. There was also an income gain for rental income, but large 

declines for proprietors' income (-$18.5b) as well as personal income 

receipts on assets (-$23.4b). 

     - Current dollar PCE was up 0.9% in March, compared with 

expectations for a 0.3% gain by the Bloomberg consensus and the MNI 

survey. The larger-than-expected reading was the result of a 2.3% 

increase in durable goods spending and a 1.4% increase in nondurable 

goods. This was accompanied by a 0.5% rise in services spending. 

     - Real PCE rose 0.7% in March after a flat reading in February. 

Real durables PCE was up 2.9% and real nondurables rose 0.8% in the 

month. There was also a 0.3% gain in real services spending. 

     - The overall PCE price index was up 0.2% in March after a 0.1% 

increase in February. The year/year rate was 1.5%, a rebound from the 

1.3% rate in February. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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