Summary:
January PCE neared the Fed's 2% target, but core inflation rose to 2.7%. Services increased, while goods saw their fourth deflation in five months.
PCE price index Feb
28/3/2025 (Fri)
Previous: 2.6% Forecast: 2.7%
Though the headline PCE price index showed the central bank was nearing its goal in January, the inflation rate was at 2.7% excluding food and energy, slightly higher than forecast.
The move in inflation was tilted toward services prices, while goods prices decreased 0.1%, the fourth outright deflation figure in the past five months for the category. Housing prices eased off their pace, rising 0.3%.
A separate report showed US consumer spending fell for the first time in nearly two years in January, setting up the inflation for cooling weaker growth. But more US tariffs are fuelling inflation expectation.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
GBP/JPY rises above 199.00 as yen weakens on US-Japan trade tension, while UK fiscal risks may limit sterling's upside momentum.
2025-07-08
Australia's Central Bank surprises markets by holding rates at 3.85%, impacting the AUD and reflecting caution on inflation and trade risks.
2025-07-08
Sterling reached its highest since October 2021 after Trump announced new tariffs on Japan, South Korea, and others, effective August 1.
2025-07-08
