Fed’s key inflation gauge rose 0.6% in January, more than expected

[February 24, 2023](Comprehensive report by Epoch Times reporter Li Xin)Core Personal Consumption Expenditures(PCE) price index rose by 0.6%, higher than expected.Due to this measurementinflationKey indicators of rapid growth are expectedthe fedFurther rate hikes will be expected to drive down prices.

Related posts

The United States added 311,000 new jobs in February, exceeding expectations

March 25, 2023

U.S.-China trade deficit continues to shrink, China’s exports remain under pressure

March 25, 2023

The U.S. Department of Commerce reported on Friday (February 24) that JanuaryinflationAccelerating, the personal consumption expenditures price index rose by 5.4% year-on-year, higher than the 5.3% in December last year; the index rose by 0.6% month-on-month, higher than the monthly increase of 0.2% in December.

The core PCE price index, which excludes food and energy, rose 0.6% from the previous month and 4.7% from a year ago, compared with Wall Street expectations of 0.5% and 4.4%, respectively.

According to the report, the surge in inflation in January was mainly due to a rise in energy prices, which rose by 2%. Food prices rose 0.4%. Goods and services both rose 0.6%.

On an annual basis, food prices rose 11.1 percent and energy prices rose 9.6 percent.

Consumer spending also rose more than expected as prices rose, rising 1.8% for the month, beating expectations for a 1.4% increase. Personal income rose 1.4%, beating expectations for a 1.2% increase.

クーポン利用で1,680★円★ 楽天1位 ボーダーロング Tシャツ ボーダー ロング カットソー プルオーバー Tシャツ 長袖 クルーネック シンプル きれいめ カジュアル ガーリー ドルマン ゆったり 長袖 カジュアル 秋 冬 韓国ファッション【予約販売：11月11日に発送予定】 価格：2980円（税込、送料無料) (2022/10/12時点) 楽天で購入

The Labor Department reported last week that the consumer price index (CPI) rose 0.5% in January, the highest in three months. Annual inflation also unexpectedly rose to 6.4%.

All this data points to an acceleration in inflation at the start of the new year, which makesthe fedIt is possible to continue to raise interest rates. The central bank has raised its benchmark interest rate by 4.5 percentage points since March 2022 as inflation hit its highest level in about 41 years.

Core PCE is the measure of inflation that Fed policymakers watch most closely because they believe it provides a better view of longer-term inflation, even though the Fed officially tracks headline PCE.

【16000円OFFクーポン配布中】iPhone 14 Pro 512GB simフリー 国内正規品 Apple 本体 端末 新品 回線セット 価格：214800円（税込、送料無料) (2022/10/12時点) 楽天で購入

The increase in core PCE in January is a worrying sign for the Fed as it tries to rein in runaway inflation with its most aggressive series of rate hikes since the 1980s.

“January’s higher-than-expected core inflation almost ensures that the Fed will continue to raise interest rates for much longer than the market expected a few weeks ago.” Jeffrey Luo, chief economist at U.S. financial securities brokerage LPL Financial Qi (Jeffrey Roach) said.

Markets slipped after Friday’s report, with futures tied to the Dow Jones Industrial Average down more than 300 points.

Responsible editor: Lin Yan#