Lates News

Core PCE inflation in the United States in December exceeded expectations, and various signs indicate that inflation will further accelerate in January, strengthening the market's expectation that the Federal Reserve will not cut interest rates before June. Data released by the Bureau of Economic Analysis of the U.S. Department of Commerce on Friday showed that the core PCE index, which excludes volatile food and energy prices, rose by 0.4% month-on-month in December, compared to economists' forecast of a 0.3% increase. The core PCE inflation rate increased by 3.0% year-on-year, compared to a 2.8% increase in November. Core PCE is one of the Federal Reserve's preferred key indicators, and this data is included in the fourth quarter GDP estimate report released on Friday. Despite the mild increase in the Consumer Price Index (CPI) in January as reported by the U.S. Bureau of Labor Statistics last week, there is still some lag in services inflation. Economists also noted a sharp increase in legal services prices in January.