US Edition
Inflation rose more quickly than expected in December
December's personal consumption expenditures inflation rose 2.9% year-over-year, surpassing the Federal Reserve's 2% target amid mixed energy prices and steady consumer spending.
- On Friday, the BEA reported the personal consumption expenditures price index rose 0.4% in December and 2.9% year-on-year, while core PCE increased 0.4% monthly and 3.0% annually.
- Broadly, goods prices such as furniture, clothing and groceries climbed while energy and utilities shifted—gas fell, electricity rose, and natural gas jumped 3.7% in December.
- The delayed BEA release was published in the advance gross domestic product report after last year’s six-week government shutdown, and consumer spending gained 0.1% when adjusted for inflation heading into the first quarter.
- Analysts say the print increases the likelihood the Fed delays cuts before June, as the Federal Reserve held short-term interest rate near 3.6% in late January despite political pressure.
- Next month, on March 13, the January PCE data will arrive, with volatile categories like a 12.0% month-on-month jump and a surge in legal services, economists said.
52 Articles
52 Articles
Inflation Rises to 3%
Data released Friday by the Commerce Department showed the Fed’s preferred inflation gauge rose to 3 percent year over year in December, up from 2.8 percent the prior month. The data show that the personal consumption expenditures (PCE) price index increased 0.4 percent in December and 2.9 percent from a year earlier. Core PCE, which does not include food and energy expenditures, also rose 0.4 percent monthly and 3 percent from last year. The p…
Annual inflation based on private consumption in the United States was 2.9 percent on an annual basis and 0.4 percent on a monthly basis in December last year. Core inflation, which excludes food and energy prices, was 3 percent on an annual basis and 0.4 percent on a monthly basis, the US Department of Commerce announced.
The U.S. Department of Commerce announced on the 20th (local time) that the personal consumption expenditures (PCE) price index rose 2.9% in December from the same month last year. It rose 0.4% from the previous month. The core PCE price index, which excludes energy and food, rose 2.9% from the same month last year.
Inflation accelerated slightly in the United States in December, at 2.9% year-on-year, according to the PCE index published on Friday by the Department of Commerce, which is taken into account by the Federal Reserve (Fed) for its monetary policy.
Associated Press News
Inflation rose more quickly than expected in December
A key inflation gauge accelerated in December, a sign that many prices are still rising more quickly than most Americans would prefer — and faster than the Federal Reserve’s target of 2% a year.
Coverage Details
Bias Distribution
- 59% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
