Inflation Expectations Show Resilience Amid Economic Uncertainty
The U.S. Commerce Department's Personal Consumption Expenditures (PCE) price index increased 0.3% in January after advancing by an unrevised 0.3% in December, data showed on Friday. Economists had expected the PCE price index to climb 0.3%. In the year through January, prices rose 2.5% after increasing 2.6% in December. Stripping out the volatile food and energy components, the PCE price index gained 0.3% last month after an unrevised 0.2% rise in December.
- The lingering concerns about inflation, despite a relatively modest January increase, may continue to exert pressure on financial markets and influence the Federal Reserve's policy decisions.
- How will sustained expectations of economic slowdown, driven by weaker consumer demand, impact the Fed's stance on interest rates over the next few months?