Inflation has stalled above policymakers’ 2% target, according to data released Friday morning, bolstering the case for the Federal Reserve’s decision earlier this week to pump the brakes on its interest rate cutting campaign.
by Derek Saul
Forbes
Key Facts
– The personal consumption expenditures (PCE) index was up 2.6% last month compared to November and 0.3% compared to December 2023, according to the Commerce Department.
– Median economist forecasts called for 2.6% annual PCE increase and a 0.3% month-over-month increase for the measure which tracks Americans’ monthly spending on consumer goods and services, according to Dow Jones data.
– Core PCE, which excludes the index’s more volatile food and energy categories, was 0.2% higher last month than it was in November, meeting economist estimates of 0.2%.