This measure has been elevated since February, when the Iran war began, seeing its highest month-over-month leap in March at 20.9%. The core PCE price index (excluding food and energy) grew 0.1% month-over-month, a smaller increase than the 0.3% seen last month. Annual core inflation landed at 3.3%, down from 3.4% last month. The BEA changed how it measures prices in portfolio-management fees, computer software and legal services, which directly influence the core PCE. These changes were expected to cause the core PCE index to fall an estimated reduction 0.2 to 0.3 percentage points, placing annual core inflation at 3.1% to 3.2%.