US PCE Prices Rise Less Than Expected
The US personal consumption expenditures price index rose 0.1% month-on-month in November 2024, below the 0.2% gains in each of the previous two months and below the 0.2% forecast. Goods prices rose less than 0.1% and services prices rose 0.2%.
The core PCE index, which excludes volatile food and energy prices, also rose 0.1%, the weakest in six months, compared with 0.3% gains in October and September and the 0.2% forecast. Food prices rose 0.2% and energy prices also edged up 0.2%.
On an annualized basis, the headline PCE inflation rate rose for a second month to 2.4% from 2.3%, but below expectations of 2.5%. Core PCE inflation was unexpectedly steady at 2.8%, while forecasts had called for a rise to 2.9%.
In December, the Federal Reserve revised its economic projections upward, raising its 2025 annual PCE inflation forecast to 2.5% from 2.1% and its core PCE inflation forecast to 2.5% from 2.2% previously estimated in September. Source: Trading Economics
