The Fed's Favorite Way to Measure Inflation

1.1% for Q1, that is the lowest number since Q2 of last year, which was minus 0.6. And I think there's a very good chance that we will be back in a negative GDP quarter by this quarter. The personal consumption expenditure, that was up 4%. The expectation was to be up 3.7%. But what's more significant than the fact that it's above expectation, if you look at the fourth quarter of last year,. the PCE was 3.9. So four is higher. Now it's not a lot higher, but the direction is important because the Fed claims it's making progress on inflation.