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Personal Consumption Expenditures Index

All articles tagged with #personal consumption expenditures index

economy2 years ago•4 min saved

"Fueling Inflation: Gas Prices Surge, Fed Finds Silver Lining"

Gas prices contributed to higher overall inflation in the US, but the Federal Reserve received positive news as its preferred inflation gauge, the core Personal Consumption Expenditures index, cooled to its lowest level in two years. The index rose 3.9% annually, the slowest increase in two years, and grew 0.1% on a monthly basis. However, the rising cost of energy, including oil prices, may continue to put upward pressure on inflation. Additionally, consumer spending is expected to slow down due to factors such as mounting credit card debt, cooling labor market, and resumption of student loan payments. The Commerce Department's monthly reports on income and spending data are closely watched, but if a government shutdown occurs, it could disrupt the release of key economic data, affecting the understanding of inflation and labor market trends.

via CNN|

#consumer-spending #economy #federal-reserve

economy3 years ago•3 min saved

Inflation Accelerates in July, Boosting Rate-Pause Hopes

The Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, increased to 3.3 percent in July, up from 3 percent previously, indicating the central bank's struggle to bring inflation back to its 2 percent target. Core inflation, which excludes volatile food and fuel prices, also rose to 4.2 percent. While inflation is expected to slow later this year, recent economic data showing strong job market and consumer spending has made Fed officials cautious in declaring victory over inflation. The Fed's upcoming meeting in September will assess whether to raise interest rates or maintain the current stance.

via The New York Times|

#economic-projections #economy #federal-reserve

economy3 years ago•2 min saved

Inflation Gauge Cools, Offering Hope for Central Banks

The Federal Reserve's preferred inflation measure, the "core" Personal Consumption Expenditures index, showed a slight moderation in May, with prices rising 4.6 percent from the previous year, excluding food and fuel. While overall inflation has been coming down, the stubbornness of core inflation remains a concern for policymakers. The Fed has been raising interest rates to combat inflation, and although they skipped a rate increase at their June meeting, they have signaled the possibility of further rate hikes. The outlook for rates remains uncertain, as inflation has been more persistent and stronger than expected.

via The New York Times|

#core-price-increases #economy #federal-reserve