U.S. September core PCE up 2.8% YoY…below market expectations

Uk Jin

Summary

The U.S. September core PCE rose 2.8% year-on-year, falling short of the market expectation (2.9%).
The figure rose 0.2% month-on-month, in line with experts' forecasts.
Core PCE was reported as a key inflation indicator referenced by the Fed in policy decisions such as decisions on the benchmark interest rate.

The U.S. core personal consumption expenditures (PCE) price index for September slightly missed market expectations.

According to data released on the 5th (local time) by the U.S. Department of Commerce's Bureau of Economic Analysis (BEA), the U.S. core PCE in September rose 2.8% year-on-year, below the market expectation (2.9%). On a month-on-month basis it rose 0.2%, in line with experts' forecasts.

Core PCE is the personal consumption expenditures index excluding the volatile food and energy components. The indicator is used to judge U.S. inflation and is considered a major gauge referenced by the U.S. Federal Reserve (Fed) ahead of policy considerations such as decisions on the benchmark interest rate.