Core PCE
Month-over-month Core PCE came in at 13bps in June, three basis points below our nowcast of 16bps. Headline came in at -11bps vs our -10bp nowcast. Our errors primarily stemmed from Supercore (core services ex-housing), while our nowcasts for core goods and housing came in right in
The BEA will make three changes to how it measures price change for portfolio management, computer software and accessories, and legal services in PCE. On net, these changes would likely lower current PCE inflation readings.
Our month-over-month May Core PCE nowcast of 0.40% came in 8 basis points above the realized 0.32% reading. Our error stemmed from Supercore (core services ex-housing) – the realized readings for nowcasts for core goods and housing came right in line with our final nowcasts for