Current inflation in the US
Current inflation is still high. Figure 1 illustrates this point. Personal consumption expenditures (PCE) inflation, the black line, stands at 4.2 percent, and core PCE inflation, the red line, stands at 4.6 percent for year-end March 2023.
Overall, news on inflation so far this year has been mixed. The good news is that food and energy prices both fell in March, and total PCE inflation slowed to 4.2 percent from 5 percent in February. Since peaking last June, inflation has declined about 2.7 percentage points—with nearly all the step-down explained by falling energy prices and slowing food prices. The bad news is that there has been little progress on core inflation.
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