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REPEAT: MNI DATA ANALYSIS: US March Core PCE Prices +1.9% Y/Y>

Repeats Story Initially Transmitted at 12:30 GMT Apr 30/08:30 EST Apr 30
--Personal Income Up 0.3%; Nominal PCE Up 0.4%
--Core PCE Prices Up 0.2% M/M; Overall Prices Flat M/M
By Kevin Kastner and Sara Haire
     WASHINGTON (MNI) - Personal income rose 0.3% in March, while 
nominal PCE was up 0.4% and the core PCE price index rose 0.2% in the 
month and 1.9% year/year, about as expected, data released by the Bureau 
of Economic Analysis Monday morning showed. 
     The core price index's 1.9% year/year rise in March was up sharply 
from 1.6% in February and the strongest pace since February. Much of the 
acceleration was due to a monthly decline in March 2017 rolling out of 
the equation, so the year/year rate has returned to its level prior to 
that decline. 
--INCOME GROWTH SOLID, SAVING LOW
     Personal income growth was supported by a gain in wages and 
salaries, as well as gains in the other income categories. 
     The saving rate slipped to 3.1% in March from 3.3% in February, 
keeping the rate well below its 3.9% year-ago level. Some analysts have 
suggested that the relatively low level of savings has helped 
consumption, though much of the consumption gains seen over the last 
year seem to be financed rather than supported by cash. 
     Personal taxes rose by 0.4% in the month after a 0.7% rebound in 
February. Disposable personal income rose by 0.3%, same as pre-tax 
income, while real disposable income was up 0.2%. 
--ENERGY PCE PRICES PLUNGE 
     The 0.4% rise in current dollar PCE followed a flat reading in 
February. Spending on durable goods rose 0.8% in the month, but 
nondurable goods spending fell 0.2% on a 2.8% drop in energy prices. 
Services spending was up 0.6%.   
     Real PCE was up 0.4% in March, as the overall PCE price index was 
flat due to the drop in energy prices. The overall price index was up 
2.0% year/year, the highest since February 2017 prior to the March 2017 
dip. 
     After inflation adjustment, durable goods PCE was up 1.1%, compared 
with the 0.8% nominal gain. Real nondurable goods PCE was up 0.3% 
compared with the 0.2% nominal decline. Real services PCE was up only 
0.3% compared with the 0.6% nominal gain. 
     ** MNI Washington Bureau: 202-371-2121 ** 

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