Core inflation is still running hotter than the Federal Reserve would like,

and that was before the recent surge in energy prices tied to the conflict in Iran.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

The latest data from the U.S. Commerce Department shows the core personal consumption

expenditures index, known as the PCE, rose 3% in February from a year ago.

That's well above the Fed's 2% target.

The headline number, which includes food and energy, came in at 2.8%. On a monthly basis, both

measures rose 0.4%, right in line with expectations. Now this matters because PCE is the Federal

Reserve's preferred inflation gauge, and core inflation, which strips out volatile food and energy

prices, is considered the best indicator

of long-term trends.

But here's where it gets interesting.

This data reflects conditions before the recent geopolitical escalation involving Iran.

Since then, oil prices have surged, briefly topping $100 a barrel, and gas prices have jumped more than a dollar

per gallon in some areas. So in many ways, this report is a snapshot of an economy that was already

under pressure before new inflation risk entered the picture. And there are signs of weakness

beneath the surface. Consumer spending rose a half a percent

in February, solid but slightly below expectations. Meanwhile, personal income actually fell by 0.1

percent, missing forecasts for growth. That combination, steady spending but declining income,

can be an early warning sign that consumers are relying more on

savings or credit to maintain their lifestyle. According to CNBC, we also got a downward vision to

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