US 'Inflation Indicator' Core PCE in January Rises 5.2% YoY... Highest Since 1983

[Asia Economy New York=Special Correspondent Joselgina] The core Personal Consumption Expenditures (PCE), a preferred inflation indicator by the U.S. Federal Reserve (Fed), showed the highest level in about 40 years.

The U.S. Department of Commerce announced on the 25th (local time) that the core PCE for January rose 5.2% compared to the same period last year. This is the largest increase since April 1983. It also exceeded the market expectation of 5.1%.

The January PCE, including volatile food and energy, rose 6.1% year-on-year. This recorded the highest increase since February 1982.

Considering that the core PCE is the Fed's most preferred inflation indicator when monitoring inflation trends, attention is focused on the Fed's rate hike moves in March.

Meanwhile, the U.S. durable goods orders for January, released on the same day, increased by 1.6% from the previous month to $277.5 billion. This also exceeded the market forecast of 0.8%.

This content was produced with the assistance of AI translation services.