The inflation indicator, which the Federal Reserve (Fed) considers an important basis for monetary policy, stagnated in the mid to late 2% range as of December last year.
The U.S. Department of Commerce revealed on the 31st (local time) that the Personal Consumption Expenditures (PCE) price index rose 2.6% in December compared to the same month last year. The year-on-year increase rate of the PCE index fell to 2.1% in September last year but continued to rise for three consecutive months thereafter. The month-on-month increase rate also recorded 0.3%, marking the highest level in eight months since April last year.
Excluding energy and food, the core PCE price index recorded an increase rate of 2.8% year-on-year, remaining at the same level for three months. The month-on-month increase rate was 0.2%.
The PCE representative index and core index increase rates announced that day were found to align with expert forecasts compiled by Dow Jones. The nominal expenditure growth rate for December last year was 0.7%, exceeding the expert expectation of 0.6%.