The US reported the figure of its favourite inflation gauge, the Personal Consumption Expenditures (PCE) price index, for December that rose 0.2% on the month and up 2.9% on a yearly basis, excluding food and energy. The reading was relatively in line with expectations by economists that saw 0.2% increase on the month and 3.0% from last year.
While core PCE rose from 0.1% in November, the annual rate was lower when compared to 3.2% in November 2022. The 12-month rate was the lowest since March 2021.
The Fed Fund Futures is now at a 50% probability for the policymakers to cut rates in March. The market will now be watching closely at the Fed’s meeting later this month.
