Key Fed inflation measure rose 0.4% in January as expected, up 2.8% from a year ago
Source: CNBC
Published Thu, Feb 29 2024 8:32 AM EST Updated 4 Min Ago
Inflation rose in line with expectations in January, according to an important gauge the Federal Reserve uses as it deliberates cutting interest rates.
The personal consumption expenditures price index excluding food and energy costs increased 0.4% for the month and 2.8% from a year ago, as expected according to the Dow Jones consensus estimates. The monthly gain was just 0.1% in December and 2.9% from the year prior.
Headline PCE, including the volatile food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, also as forecast, according to the numbers released Thursday by the Commerce Departments Bureau of Economic Analysis. The respective December numbers were 0.1% and 2.6%.
The moves came amid an unexpected jump in personal income, which rose 1%, well above the forecast for 0.3%. Spending decreased 0.1% versus the estimate for a 0.2% gain. Januarys price rises reflected an ongoing shift to services over goods as the economy normalizes from the Covid pandemic disruptions.
Read more: https://www.cnbc.com/2024/02/29/pce-inflation-january-2023-.html
Article updated.
Previous article -
Inflation rose in line with expectations in January, according to an important gauge the Federal Reserve uses as it deliberates cutting interest rates.
The personal consumption expenditures price index excluding food and energy costs increased 0.4% for the month and 2.8% from a year ago, as expected according to the Dow Jones consensus estimate.
Headline PCE, including the volatile food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, compared to respective estimates for 0.3% and 2.4%, according to the numbers released Thursday by the Commerce Department's Bureau of Economic Analysis.
The moves came amid an unexpected jump in personal income, which rose 1%, well above the forecast for 0.3%. Spending decreased 0.1% vs. the estimate for a 0.2% gain.
Original article -
Inflation rose in line with expectations in January, according to an important gauge the Federal Reserve uses as it deliberates cutting interest rates.
The personal consumption expenditures price index excluding food and energy costs increased 0.4% for the month and 2.8% from a year ago, as expected according to the Dow Jones consensus estimate.
Headline PCE, including the volatile food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, compared to respective estimates for 0.3% and 2.4%.
The moves came amid an unexpected jump in personal income, which rose 1%, well above the forecast for 0.3%. Spending decreased 0.1% vs. the estimate for a 0.2% gain.
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IronLionZion
(45,540 posts)BumRushDaShow
(129,543 posts)and I figured no cuts before May. But so far they are not continuing to raise rates as had been assumed by many on DU.
IronLionZion
(45,540 posts)People really shouldn't be surprised or make their own assumptions.
speak easy
(9,320 posts)where is the recession they promised me? How much longer can I be expected to wait?
BumRushDaShow
(129,543 posts)Johnny2X2X
(19,118 posts)This is really good news.
2.8% is excluding food and energy, which went down, when those are included it's 2.4%.
DOW futures are up with this news.
Igel
(35,359 posts)0.1% in 12/23 v 0.4% in 1/24 isn't a decrease. What happened is that some of the large increases in 12/22 are now out of the 12-month window for the annual average.
Now, is this a one-month uptick or a longer trend? That requires the gift of prophecy--not in the modern sectarian sense of "inspired preaching on any topic" but in the longer, 3000-year-old tradition of "speaking accurately about events that are yet so far in the future as to not be predictable given the usual means."