PCE Runs Hot: Inflation Is Not Going Away in 2023


Fox Business reports that an inflation measure closely watched by the Federal Reserve rose faster than expected in January.

“The personal consumption expenditures (PCE) index showed that consumer prices rose 0.6% from the previous month — the most since June — and accelerated 5.4% annually, according to the Bureau of Labor Statistics.

“Food prices increased 0.4 percent, and energy prices increased 2.0 percent. The PCE price index increased by 0.6 percent, excluding food and energy.

BEA reports, “Government social benefits decreased in January, reflecting a decrease in “other” benefits that was partly offset by an increase in Social Security. The decrease in “other” benefits primarily reflected the expiration of the extended child tax credit (as authorized by the American Rescue Plan) as well as a decline in one-time refundable tax credits issued by states. ”

“Core inflation in January was hotter than expected, all but insuring the Fed will continue on its rate hiking campaign for a lot longer than markets anticipated just a few weeks ago,” said Jeffrey Roach, chief economist at LPL Financial.

The market went down 300 points upon the news.

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Peter B. Prange
Peter B. Prange
9 months ago

The middle class and lower get hit again. How will pensioners get on now;