The CEO and chief strategist of Qi Research, Danielle Dimartino Booth, reacts to the federal reserve, leaving interest rates unchanged to earn money.
The favorite inflation gauge of the federal reserve has shown that prices have increased as expected in December, and it remains above the target level of the central bank in the middle of its continuous efforts to combat inflation.
Friday, the Commerce Department indicated that the personal consumer expenditure index (PCE) was up 0.3% compared to the previous month and 2.6% on an annual basis. These figures were in accordance with the estimates of the economists interviewed by LSEG.
Core PCE, which excludes the volatile prices of food and energy, increased by 0.2% for the month and increased by 2.8% compared to a year ago, in accordance with estimates.
The decision -makers of the federal reserve focus on the figure of the PCE, as they try to slow down the rate of price increases to their 2%objective, although they consider the basic data as a better indicator of inflation. The PCE in the lead increased to more than an annual rate of 2.4% in November at 2.6% last month, while the Core PCE has been 2.8% for three consecutive months.
The PCE title has shown that goods prices were stable in December, while services prices increased by 3.8% compared to a year ago. Food prices increased by 1.6% last month compared to a year ago, while energy prices fell 1.1% during this period.
Wages and wages increased by 0.4% in December compared to the previous month – a slight deceleration after October and November experienced wages and wages of 0.5% during these months.
The personal savings rate in percentage of disposable income was 3.8% in December. This metric rose from 4.3% in October to 4.1% in November and was almost 5% last spring.
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