Personal consumption expenditures inflation 3.8at % 2023highest since
The U.S. personal consumption expenditures (PCE) price index 4year over year in 3.8%, 2023the highest since 5. A sharp rise in energy prices was cited as the main cause, while core PCE and supercore inflation slowed.
The U.S. personal consumption expenditures (PCE) price index, the inflation gauge favored by the Federal Reserve, 4year over year for 3.8%.2023This is 5the highest level since 5, 28according to a report released on .
The report says the overall increase in prices this time was mainly due to a sharp rise in energy prices. The surge in energy prices was attributed to supply disruptions in the Strait of Hormuz. The report states that energy was the main driver of the overall increase.
By contrast, core PCE, which excludes food and energy, and the supercore measure showed signs of slowing. Core PCE tracks price trends excluding food and energy. Supercore is a supplementary measure that examines price changes more closely, focusing on sensitive items in the services sector.
The market reaction suggested that concerns about interest rates had eased. Stock futures rose broadly immediately after the announcement. At the same time, U.S. Treasury yields and the dollar fell.
The report cited both disruptions to energy supplies and a slowdown in key indicators. Short-term market prices moved immediately after this information was released. The original report is 28compiled using data dated 4and was prepared based on monthly inflation.
Sources: Benzinga
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