US: Annual Core PCE Price Index arrives at 1.5% in December vs. 1.3% expected

Core PCE inflation in US rose more than expected in December.
US Dollar Index stays near 90.50 after the data.

Eren Sengezer FXStreet

The Personal Consumption Expenditures (PCE) Price Index in December edged higher to 1.3% from 1.1% in November, the report published by the US Bureau of Economic Analysis showed on Friday. On a monthly basis, the PCE Price Index rose to 0.4% from 0%.

More importantly, the Core PCE Price Index, the Federal Reserves preferred measure of inflation, ticked up to 1.5% and came in higher than the market expectation of 1.3%.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen at 90.45, where it was virtually unchanged on the day.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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