Citigroup: Core PCE monthly rate is expected to be 0.3% in March.

Compared to the Federal Reserve's preferred PCE indicator, core CPI has consistently shown unusually small increases. Based on today's CPI data, Citigroup economists initially estimate a rounded-to-the-round month-over-month increase in core PCE of 0.3%. This level is higher than the Fed's 2% year-over-year target, but better than yesterday's data showing a 0.4% increase in February. The Citigroup team points out that they need to combine PPI data to make a more accurate forecast for PCE. (Jinshi)