PiCK

US Core PCE for December up 3.0% YoY…Beats Market Expectations

Uk Jin

Summary

The US core PCE for December rose 3.0% year on year, beating the market forecast (2.9%).
The December core PCE increased 0.4% month on month, also above economists’ expectations.
Core PCE is a key indicator the US central bank (Fed) consults ahead of policy deliberations, including decisions on the benchmark interest rate.

The US core personal consumption expenditures (PCE) price index for December came in above market expectations.

According to data released on the 20th (local time) by the Bureau of Economic Analysis (BEA) at the US Department of Commerce, the US core PCE for December rose 3.0% from a year earlier, topping the market forecast of 2.9%. It also increased 0.4% month on month, exceeding economists’ expectations.

Core PCE is an index that excludes volatile food and energy components. It is regarded as a key indicator the US central bank (Fed) consults ahead of policy deliberations, including decisions on the benchmark interest rate.