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Pce Price Index

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economy1 year ago

US Consumer Spending Rises in October Amid Persistent Inflation

In October 2024, U.S. personal income rose by $147.4 billion (0.6%), while disposable personal income increased by $144.1 billion (0.7%). Personal consumption expenditures (PCE) grew by $72.3 billion (0.4%). The PCE price index rose 0.2%, with a 0.3% increase excluding food and energy. Real disposable income and real PCE saw modest gains of 0.4% and 0.1%, respectively. The increase in income was driven by higher compensation and asset income, while PCE growth was led by services, particularly healthcare and housing. The personal saving rate was 4.4%.

via Bureau of Economic Analysis|
#consumer-spending#disposable-income#economic-growth
economics1 year ago

"Fed's Preferred Inflation Gauge Steady in April"

U.S. inflation remained steady in April, with the PCE price index rising 0.3% month-on-month and 2.7% year-on-year, matching March's figures. Core PCE, excluding food and energy, increased by 0.2% month-on-month. The data suggests that inflation may persist longer than expected, complicating the Federal Reserve's plans to cut interest rates. Market reactions were mixed, with slight gains in stocks and a dip in Treasury yields. Analysts noted that while the inflation data met expectations, weaker consumer spending could impact future economic conditions.

via Yahoo Finance|
#consumer-spending#economics#federal-reserve
economics1 year ago

"Cooling Inflation Gauge Sparks Optimism for Stocks"

The Federal Reserve's preferred inflation gauge, the personal consumption expenditures (PCE) price index minus food and energy, is expected to show a modest increase of 0.2% in April, indicating some relief from persistent price pressures. This data supports the Fed's cautious approach to interest rate cuts, as officials seek more evidence of sustained progress towards their 2% inflation target. The overall PCE price index is projected to rise 0.3% for the third consecutive month, highlighting the uneven progress in the Fed's inflation battle.

via Yahoo Finance|
#economics#federal-reserve#inflation
economy1 year ago

"February's Rise: Key Fed Inflation Gauge and Consumer Spending"

The Federal Reserve's key inflation gauge, the personal consumption expenditures price index (PCE), rose 2.5% annually in February, in line with expectations, while consumer spending spiked 0.8% last month, surpassing projections. The Fed left interest rates unchanged at 5.25% to 5.50% and anticipates three rate cuts this year, with financial markets expecting the first cut in June. Stubborn inflation has led to lowered expectations for interest rate cuts, prompting the Fed to closely monitor economic data before making any decisions.

via Fox Business|
#consumer-spending#economy#federal-reserve
finance1 year ago

"US Inflation Rises to 2.8% Annually, Fed Chair Powell to Address Concerns"

The core PCE price index, a key Federal Reserve inflation measure, rose 0.3% in February, keeping a June rate cut on the table. Fed chair Jerome Powell's prediction of the monthly increase proved accurate, with the 12-month inflation rate at 2.8%. Personal income rose 0.3%, while personal consumption expenditures increased 0.8% in February. Market pricing shows 64% odds of a rate cut by the June 12 meeting, with 70% odds of three quarter-point rate cuts by year-end 2024.

via Investor's Business Daily|
#federal-reserve#finance#inflation
economy1 year ago

"US Economy: Inflation Rises to 2.8% Annually, Growth Revised Up to 3.4%"

The key inflation gauge, the personal consumption expenditures price index, rose 2.8% annually in February, in line with expectations, potentially keeping the Federal Reserve from considering interest rate cuts. The core PCE inflation, excluding food and energy, increased 2.8% on a 12-month basis, while consumer spending surged 0.8% on the month, indicating additional inflation pressures. The Fed targets 2% annual inflation, and while the numbers are not ideal, they are not unexpected. The release comes after the Fed held its benchmark rate steady and indicated it has not seen enough progress on inflation to consider cutting, with market expectations aligning with the Fed's projections for three rate cuts this year.

via CNBC|
#consumer-spending#economy#federal-reserve
financeeconomics1 year ago

"Fed's Patient Stance on Inflation Bolstered by Tamer Data and Biden's Fiery Address"

The Federal Reserve's preferred measure of underlying US inflation, the core personal consumption expenditures price index, is expected to show a 0.3% increase in February, reinforcing the central bank's cautious approach to cutting interest rates. The overall inflation measure is forecast to climb 0.4%, the highest since September, indicating a faster pace of price growth. The report also projects stronger consumer spending growth and solid gains in personal income. Additionally, various economic releases from around the world, including inflation updates in Australia and Europe, may impact global currencies and central bank decisions.

via Yahoo Finance|
#federal-reserve#financeeconomics#global-economy
economy2 years ago

"US Consumer Spending Surges Despite Declining Disposable Income"

Real disposable personal income has dropped for the third consecutive month, while spending remains strong. Personal income increased by 0.3 percent in September, but real disposable income decreased by 0.1 percent. Personal consumption expenditures increased by 0.7 percent, with goods increasing by 0.5 percent and services by 0.3 percent. The PCE price index increased by 0.4 percent, while core PCE (excluding food and energy) increased by 0.3 percent. Despite the drop in real disposable income, real personal consumption expenditures continue to rise as consumers dip into savings.

via Mish Talk|
#disposable-personal-income#economy#fiscal-stimulus
economy2 years ago

"Surprising Surge: Fed's Preferred PCE Price Tracker Reveals Unexpected Inflation Spike"

Inflation, as measured by the PCE price index, rose higher than expected in September, increasing the pressure on the Federal Reserve to consider raising interest rates. The index has risen 3.4% over the past year, surpassing the Fed's 2% target. However, the core rate of inflation, which excludes volatile food and energy costs, increased at a slower pace. While the worst bout of inflation in 40 years is slowly receding, it may take a few more years for prices to return to pre-pandemic levels. The Fed expects to reach its 2% inflation target by 2026. The increase in inflation is unlikely to prompt the Fed to raise rates at its upcoming meeting, and Wall Street expects rates to remain unchanged.

via MarketWatch|
#core-inflation#economy#federal-reserve
economy2 years ago

US Core PCE Inflation Declines to 3.7% as Spending Tops Estimates

The US Bureau of Economic Analysis reported that inflation in the US, as measured by the change in Personal Consumption Expenditures (PCE) Price Index, was 3.4% on a yearly basis in September, matching the August reading and meeting market expectations. The annual Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, rose 3.7%, slightly softer than the previous month. Personal Spending increased by 0.7% on a monthly basis in September, while Personal Income rose by 0.3%. The US Dollar's valuation remained relatively stable following the release of the inflation data.

via FXStreet|
#economy#federal-reserve#pce-price-index
economy2 years ago

US Inflation on the Rise, Fed Considers Rate Hikes

Inflation in the US, as measured by the change in Personal Consumption Expenditures (PCE) Price Index, rose to 4.4% on a yearly basis in April from 4.2% in March, the US Bureau of Economic Analysis reported on Friday. The increase in the annual Core PCE Price Index, the Federal Reserve's preferred gauge of inflation, edged higher to 4.7% from 4.6% in the same period, compared to analysts' forecast of 4.6%. The benchmark 10-year US Treasury bond yield gained traction after these data and climbed to its highest level in over two months above 3.8%.

via FXStreet|
#economy#federal-reserve#interest-rates