“Core Services” Inflation Jumps to 2nd Worst since 1985, “Non-Housing Services” Are Red Hot. Fed’s Job Far from Done

Services inflation is at it again. Year-over-year, the “core services” PCE price index accelerated to 5.4%, the second worst since 1985, according to data by the Bureau of Economic Analysis today, sharing that spot with January 2023. February had been the worst.  The Fed’s job is far from done.