Key Fed inflation measure rose 0.6% in January, more than expected [View all]
Source: CNBC
A measure the Federal Reserve watches closely to gauge inflation rose more than expected in January, indicating the central bank has more work to do to bring down prices.
The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago, the Commerce Department reported Friday. Wall Street had been expecting respective readings of 0.5% and 4.4%. The core PCE gains were 0.4% and 4.6% in December.
Including the volatile food and energy components, headline inflation increased 0.6% and 5.4% respectively, compared to 0.2% and 5.3% in December.
Markets fell following the report, with the Dow Jones Industrial Average off around 500 points in morning trading.
Read more: https://www.cnbc.com/2023/02/24/key-fed-inflation-measure-rose-0point6percent-in-january-more-than-expected.html
Wanted to add where the fed is with interest rates at post time - https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
Shows the daily level of the federal funds rate back to 1954. The fed funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate. The current federal funds rate as of February 22, 2023 is 4.58%.
Article updated.
Original article -
The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago, the Commerce Department reported Friday. Wall Street had been expecting respective readings of 0.5% and 4.4%. Including the volatile food and energy components, headline inflation increased 0.6% and 5.4% respectively.
Markets fell following the report, with futures tied to the Dow Jones Industrial Average off more than 300 points. Consumer spending also rose more than expected as prices increased, jumping 1.8% for the month vs. the estimate for 1.4%. Personal income rose 1.4%, higher than the 1.2% estimate. The personal saving rate increased, rising to 4.7%.
All of the numbers suggest inflation accelerated to start the new year, putting the Fed in a position where it likely will continue to raise interest rates. The central bank has pushed benchmark rates up by 4.5% since March 2022 as inflation hit its highest level in some 41 years.
= new reply since forum marked as read