US Edition
Inflation rose more quickly than expected in December
Core personal consumption expenditures inflation rose 3.0% year-over-year in December, the highest since February, keeping overall inflation above the Federal Reserve's 2% target.
- 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.
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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.
US PCE inflation heats up in December
WASHINGTON, Feb 20 (Reuters) – Underlying U.S. inflation increased more than expected in December, and signs are pointing to a further acceleration in January, which would strengthen expectations that the Federal Reserve would not cut interest rates before June. The personal consumption expenditures price index, excluding the volatile food and energy components, rose 0.4% after an unrevised 0.2% gain in November, the Commerce Department’s Bure…
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.
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