Core PCE Price Index holds steady, meeting expectations
The latest Core PCE Price Index data was released at 0.2%, in line with market expectations. Core PCE measures changes in the prices of goods and services purchased by consumers, excluding food and energy, so it's often used to better gauge inflation.
Interestingly, the figure is also exactly the same as the previous period (remaining at 0.2%). This means core inflationary pressures haven't shown a new spike—and consumer spending patterns also appear relatively stable.
For the market, a figure that's "appropriate" like this usually elicits a calmer reaction. Because it's neither hawkish nor dovish, the dollar tends to receive mild support, but not a major boost.
In conclusion: This Core PCE signals that core inflation remains under control, so market participants will continue to monitor subsequent data to see whether this stable trend persists or begins to change.
Source: Newsmaker.id
