The Clap
The personal consumption expenditure (PCE) index rose by 0.1% in November from one month ago, 5.5% YoY, the lowest increase since October 2021.
What
The core PCE, which does not take into account volatile food and energy prices, went up by 0.1% from the month before, less than the expected 0.2%.
So What
The PCE, which is the Fed’s favored inflation measure, indicated moderating inflation for the month, which could press the brakes on interest rate hikes in the coming few months.
Now What
The Fed’s efforts to cool down inflation are beginning to pay off, with recent months indicating cooling prices.
All eyes will be on the Fed during the coming month with regard to their decision on interest rates.
