AI Data Insight
In Q1 2026, the US nominal nondurable goods personal consumption expenditures (PCE) grew at an annualized quarter-over-quarter rate of 4.7%, a significant acceleration from the previous 2.6%. However, this increase was primarily driven by a surge in inflation triggered by oil prices and tariffs, while overall real demand actually slowed. As core PCE surged to 4.3%, market concerns about stagflation intensified, and the probability of the Federal Reserve cutting interest rates in the short term is expected to be slim.