US December Core PCE Rises 2.8% YoY, Meeting Market Expectations

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The United States' December Core Personal Consumption Expenditure (PCE) price index met market expectations of 2.8%.

According to data released by the Bureau of Economic Analysis (BEA) of the United States Department of Commerce on the 31st (local time), the Core PCE in December rose by 2.8% year-on-year, aligning with market expectations. It also increased by 0.2% month-on-month, meeting experts' forecasts.

Core PCE is an index that excludes the volatile food and energy prices. It is considered a key indicator that the Federal Reserve (Fed) refers to before making policy considerations such as interest rate decisions.

Bloomberg reported, "The Core PCE, preferred by the Federal Reserve (Fed), remained at a low level in December last year, and real income also showed signs of slowing."

It further analyzed, "This data may alleviate concerns about a sudden surge in inflation that temporarily accelerated in recent months. This could be a factor supporting a rate cut this year."