The U.S. Department of Commerce announced on the 29th (local time) that the Personal Consumption Expenditures (PCE) price index rose by 0.2% compared to the previous month and by 2.6% compared to the same month last year. Market expectations were 0.2% and 2.6%, respectively.
The PCE price index measures the prices paid by U.S. residents for goods and services.
The core PCE price index, excluding items with high price volatility such as food and energy, increased by 0.3% compared to the previous month and by 2.9% compared to the same month last year. Market expectations were 0.3% and 2.9%.
The PCE price index is considered an important gauge by the Federal Reserve in determining interest rates. With data matching market expectations, the likelihood of an interest rate cut is projected to gain traction.