US PCE inflation heats up
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Wall Street’s major market averages move higher on Friday as investors react to the PCE report, which came in hotter than expected. The tech-focused Nasdaq Composite (COMP:IND) was +0.5%. At the same time,
Core PCE prices accelerated to a 3% annual increase in December, hitting their highest level since February in a clear sign that inflation is staying stubbornly above the Fed's target of a 2% annual rate.
The core PCE price index was expected to increase 3% from a year ago in December. GDP was projected to rise at a 2.5% pace in Q4.
Friday’s personal consumption expenditure data drop will give policymakers a broader picture of what’s happening with inflation.
According to the Commerce Department's Bureau of Economic Analysis, the Personal Consumption Expenditures price index rose 0.4% in December and 2.9% from a year earlier, while core PCE increased 3.0% year over year.
The PCE price index faces a projected 0.4% spike as Q4 2025 GDP growth slows to 3%. Read why disruption risks are very high for growth and inflation.
What is the PCE (Personal Consumption Expenditures) Index? The PCE Price Index is a key measure of inflation that tracks changes in the prices U.S. households pay for goods and services. Released monthly by the Bureau of Economic Analysis (BEA), it ...
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PCE report: Fed's preferred inflation gauge rises 2.9% in December
Index, which is the Federal Reserve’s preferred gauge of inflation, advanced 2.9% in December on an annualized basis. The Commerce Department data showed that core PCE, which excludes food and energy,