Breaking: US core PCE inflation rises to 2.7% in May vs. 2.6% expected
Annual inflation in the United States (US), as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, rose to 2.3% in May from 2.2% in April (revised from 2.1%), the US Bureau of Economic Analysis reported on Friday. This reading came in line with the market expectation.
The corePCEPrice Index, which excludes volatile food and energy prices, rose 2.7% in the same period, following the 2.6% increase (revised from 2.5%) recorded in April. The PCE Price Index and the core PCE Price Index rose 0.1% and 0.2%, respectively, on a monthly basis.
Other details of the report showed that Personal Income declined by 0.4% on a monthly basis, while the Personal Spending fell by 0.1%.
Market reaction to PCE inflation data
TheUS Dollar Indexedged lower with the immediate reaction to these data and was last seen losing 0.25% on the day at 97.10.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the British Pound.
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
This section below was published as a preview of the US Personal Consumption Expenditures (PCE) Price Index data for May at 06:00 GMT.
TheUnited States(US) Bureau of Economic Analysis (BEA) will publish the Personal Consumption Expenditures (PCE) Price Index data for May on Friday at 12:30 GMT.
This index is closely scrutinized as it is the Federal Reserve’s (Fed) preferred measure of inflation at a moment when traders are looking for hints about when the US central bank will resume interest-rate cuts.
Anticipating the PCE: Insights into the Fed's key inflation metric
The core PCE Price Index, which excludes volatile food and energy prices, is expected to advance 0.1% month-over-month (MoM) in May, at the same pace as seen in April.
Over the last twelve months, the core PCE inflation is set to tick a tad higher to 2.6% in May from 2.5% in April.
Meanwhile, the headline annual PCE inflation is seen rising to 2.3% from 2.1% in the same period.
Markets usually brace for a big reaction to the PCE inflation data as Fed officials consider this inflation gauge when deciding on the next policy move.
During the two-day semiannual congressional testimony earlier in the week,Fed Chairman Jerome Powellnoted that he expects policymakers to stay on hold until they have a better handle on the impact tariffs will have on prices.
“We’re just trying to be careful and cautious,” he said.
Powell’s comments dismissed reviving expectations of the Fed lowering interest rates as early as July. These expectations had been prompted by comments from Fed Governors Christopher Waller and Michelle Bowman, who advocated for a July rate reduction a week ago.
Markets currently expect an 18% chance of a July Fed rate cut, while pricing in a 70% probability of a cut in September, according to the CME Group’s FedWatch Tool.
_300xx250.jpg)
0 댓글