(Reuters) – The Personal Consumption Price Index of the US Department of Trade (PCE) increased by 0.3% in January after progressing in December with an unregistered 0.3%, data showed on Friday. Economists expected the PCE price index to climb to 0.3%. In the year until January, prices increased 2.5% after they increased 2.6% in December.
Setting the unstable components of food and energy, the PCE price index received 0.3% last month after an irregular increase of 0.2% in December. Year after year, the basic inflation increased 2.6% after it climbed to 2.9% in December.
Fed monitors the PCE prices for its goal of 2% inflation. Financial markets expect the FED to continue reducing interest rates in June.
Market reaction:
Stocks: S&P 500 Emini Future added to modest gains and rose 0.27%, indicating firmly open to Wall Street
Bonds: 10-year-old yield in the US Treasury was slightly transferred to 4.256%and a two-year yield indicated up to 4.053%
Forex: The dollar index was switched off 0.08%, moving a little. The euro rose by 0.1%
Comments:
Jeffrey Roach, Chief Economist, LPL Financial, Charlotte, North Carolina (E -Postic)
“A softer consumer cost and slow income growth should attract Fed’s attention. Despite slowing down in the annual inflation pace, the monthly rate still becomes hot than the Fed would like. Investors will continue to focus on the insecure growth path, because it is real consumption in January, which is reduced, and it will be reduced in June.
Brian Jacobsen, Chief Economist, Annex Wealth Management, Menomonee Falls, Wisconsin
“The growth of revenue has helped the usual growth of social insurance costs and dividend growth. The consumption has difficult to hit the nasty time in January. Inflation was in line with expectations. The problem is not so much about what people are afraid of being able to be. It is often possible that people who may be in progress, who could have a threat to the field. They could show a big recovery in March.
Peter Cardillo, main market economist, Spartan Capital Securities, New York
“Inflation numbers are still elevated, although they have entered expectations, but year after year there has been a slight relief from the previous reading annually, but the report indicates that inflation remains sticky.”
