(Reuters) – US prices have increased in December, while consumer consumption has increased, suggesting that federal reserves can delay interest rates this year.
The cost of costs for personal consumption (PCE) costs increased by 0.3% last month after an unregistered 0.1% of winnings in November, the trade department said on Friday. The economists surveyed by Reuters forecasts the PCE price price index, which goes up 0.3%. In 12 months to December, the PCE price index progressed 2.6% after increasing 2.4% in November.
The US Central Bank monitors the PCE prices for monetary policy.
Market reaction:
Stocks: S&P 500 Emini Future -a held firmly in an increase of 0.48%, pointing to a firmly open to Wall Street
Bonds: 10-year-old yield in the US Treasury was slightly transferred to 4.523%and two-year yield increased 4.207%
Forex: The dollar index was held by the company, which is 0.157% more
Comments:
Peter Cardillo, main market economist, Spartan Capital Securities, New York
“Basically on a monthly basis, the inflation was a little higher than I expected. The anniversary, it was a little more, but the nucleus, which was actually crucial, was basically unchanged for a year.
“Basically, it doesn’t really change the needle. It’s a mixed report, and it plays in the hands of the Fed because the FED needs more confirm that inflation is going in the right direction.
“The bottom line is that this report will not have a big impact on markets in any direction. The tariff situation is what is on the front line and you just have to wait and see … we may get a surprise, and that may be just under 25% Trump talked about. “
Gennadiy Goldberg, Head of US Price Strategy, TD Securities, New York
“An interesting set of data for markets is an interesting. Very strong data on consumption of personal income still suggests that the consumer remains resistant. At the same time, you have inflationary pressure that still fades. Before rounding, it was 0.156% (core bee increase in the month), so it’s actually a pretty positive number, I would say, for the market rate. He really emphasizes that the Fed can keep the rates on hold, at least for the next meeting or so if the data continues, and we actually think that the FED can keep rates on hold for longer, until the first half of the years. “
Kyle Chapman, FX Markets Analyst, Ballinger Group, London
“Data indicate a trend for American prices that still direct down, but also confirms that the Fed is right to start an extended break. Although 2.8% is obviously significantly above the goal, we will see a few quick gains annually in the next few months, because the jump in Q1 last year fades from the calculation.
