© Reuters
Investing.com – Consumer Expenditure Price Index (CPI) data has gained momentum after a recent Fed meeting where Jerome Powell confirmed that his results matter most to them, and that their lack of decline is the main motivation for the Fed to continue its policy of tightening.
The most important inflation data for the Fed
The annual index of personal consumption expenditure increased by 5.5%, while last month it increased by 6.1%. On a month-to-month basis, it was up just 0.1%, after rising 0.4% in earlier data.
As for the Core Consumer Expenditure Price Index year over year, it rose 4.7% as expected by experts, down from the previous reading of 5.0%. On a monthly basis, it rose by 0.2% as expected by experts, down from the previously reported 0.3% increase.
income and expenditure
The personal income index showed a 0.4% increase, better than experts’ expectations, up only 0.3%, and down from the 0.7% increase in the previous reading.
As for spending, it fell to a 0.1% increase, after hitting a 0.9% increase in the previous reading.
Data synthesis
The data reveals a positive movement in key inflation data at the US Federal Reserve and an improvement in spending in line with an improvement in inflation rates and a notable slowdown in their growth. The Fed aims to bring the consumer spending index to 2%.
markets now
The American is now trading down 0.20% while rising 0.57% to trade at $1805.65 an ounce. It will also rise 1.57% to reach $23.995 an ounce.
And US market indexes continue to decline in pre-open trading, as index futures contracts lost 0.31% of their value, Jones fell 0.16% and Nasdaq fell 0.49%.
