Michael McKee

Higher fertilizer costs may push up prices for fruits and vegetables.

All of it is forecast to raise the annual rate of inflation well above 3%, which is well above the Fed's 2% target.

Worse, even if a peace deal stops the fighting, it will take months before prices come down significantly.

Michael McKee, Bloomberg Radio.

The PCE price index for February comes in up four-tenths, which is as expected, but that's a rise from the prior month.

Three-tenths doesn't change the year-over-year number, 2.8%.

Core PCE up four-tenths as forecast, same as last month.

So we actually see the core PCE year-over-year number fall to 3% from 3.1%.

The PCE price index for February comes in up four-tenths, which is as expected, but that's a rise from the prior month.

Three-tenths doesn't change the year-over-year number, 2.8%.

Core PCE up four-tenths as forecast, same as last month.

So we actually see the core PCE year-over-year number fall to 3% from 3.1%.

It's important data for the Fed, but it is backward looking February data in terms of spending incomes and prices.

The PCE price index for February.

comes in up four-tenths, which is as expected, but that's a rise from the prior month.

Three-tenths doesn't change the year-over-year number, 2.8%.

Core PCE up four-tenths as forecast, same as last month.

So we actually see the core PCE year-over-year number fall to 3% from 3.1% as base effects affect that.

Most participants raised the concern that a protracted war could lead to further softening of labor markets, which would warrant additional rate cuts.

But many participants pointed to the risk of inflation remaining elevated for longer than expected, which, quote, could call for rate increases.