(Trends Wide) — The Federal Reserve’s preferred inflation gauge showed an unexpected year-on-year rise in January, showing the strength of the US economy and that the rise in prices will not be stopped so easily.
The Personal Consumption Expenses (PCE) price index increased by 5.4% compared to the previous year, as reported this Friday by the Bureau of Economic Analysis of the Department of Commerce (BEA, for its acronym in English). English). In December, prices rose 5.3% annually.
In January alone, prices rose 0.6% from the previous month, a higher monthly increase than in December, which was 0.2%.
Some positive news: property prices continued to decline, down 0.7% from the previous month. But the prices of services increased by 0.5%.
The Federal Reserve’s measure of inflation, the core PCE index (which excludes the often more volatile food and energy categories), showed prices rising 0.6% for the month, and 4.7% for the month. in the 12 months ending in January.
Economists expected the annual core index to come in at 4.3%, prolonging a cooling phase that had already lasted three months.
PCE ratios are included in the personal income and expense report published by the BEA. The report includes the latest estimates on how much consumers contribute and how much they spend.
Consumer spending and personal income rose 1.8% and 0.6% respectively last month, according to the report. Spending beat economists’ expectations for a 1.3% rise and revenue growth fell short of forecasts of 1%.
(Trends Wide) — The Federal Reserve’s preferred inflation gauge showed an unexpected year-on-year rise in January, showing the strength of the US economy and that the rise in prices will not be stopped so easily.
The Personal Consumption Expenses (PCE) price index increased by 5.4% compared to the previous year, as reported this Friday by the Bureau of Economic Analysis of the Department of Commerce (BEA, for its acronym in English). English). In December, prices rose 5.3% annually.
In January alone, prices rose 0.6% from the previous month, a higher monthly increase than in December, which was 0.2%.
Some positive news: property prices continued to decline, down 0.7% from the previous month. But the prices of services increased by 0.5%.
The Federal Reserve’s measure of inflation, the core PCE index (which excludes the often more volatile food and energy categories), showed prices rising 0.6% for the month, and 4.7% for the month. in the 12 months ending in January.
Economists expected the annual core index to come in at 4.3%, prolonging a cooling phase that had already lasted three months.
PCE ratios are included in the personal income and expense report published by the BEA. The report includes the latest estimates on how much consumers contribute and how much they spend.
Consumer spending and personal income rose 1.8% and 0.6% respectively last month, according to the report. Spending beat economists’ expectations for a 1.3% rise and revenue growth fell short of forecasts of 1%.
