US: Annual core PCE Price Index arrives at 1.6% as expected
- Inflation continues to stay below the Fed's target.
- Personal income increases more than expected in May.
- Greenback struggles to make a decisive move in either direction after data.
According to the monthly data published by the U.S. Bureau of Economic Analysis, the core Personal Consumption Expenditures Price Index, the Federal Reserve preferred gauge of inflation, rose 1.6% in May to match the previous reading and the market expectation.
On a monthly basis, the core PCE Price Index came in at +0.2%. Further details of the report showed that personal spending in the same period increased by 0.4% on a monthly basis to fall in line with analysts' estimate and personal income rose by 0.5% to beat the market forecast of 0.3%.
The US Dollar Index didn't show a significant reaction to the mixed data and was last down 0.08% on a daily basis at 96.14.
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.
