US Personal Consumption Expenditure (PCE) Price Index Rises 2.4% in January – Federal Reserve Set to Lower Interest Rates in June

The US personal consumption expenditure (PCE) price index rose 2.4% in January compared to the same month last year. Photographed in Washington in 2022 (2024 Reuters/Sarah Silbiger/File Photo)

[ワシントン ２９日 ロイター] – The personal consumption expenditure (PCE) price index for January announced by the US Department of Commerce on the 29th increased by 2.4% compared to the same month last year. Growth contracted from 2.6% in the previous month and was the lowest since February 2021. Although the growth was faster than the previous month, the Federal Reserve is still on track to begin lowering interest rates in June.

Compared to the previous month, it increased by 0.3% due to the rise in service prices. Last December, the price rose by 0.1%, which was revised from the previous 0.2% rise.

In January, both the year-on-year and month-on-month comparisons were in line with economists’ forecasts compiled by Reuters.

“With the economy still on track and January’s inflation concerns unlikely to persist, Fed officials are likely to continue considering their first rate cut at their June meeting,” said Christopher Rapkey, chief economist at FWDBONDS. It’s big.”

In January, goods fell by 0.2%. Energy fell 1.4%, offsetting a 0.5% rise in food.

Data for January also showed that spending on things like cars and furniture fell, and growth in consumer spending slowed.

The core PCE price index, which excludes volatile food and energy prices, rose 2.8% from the same month last year. Growth slowed from 2.9% in December and was the lowest since March 2021.

It rose 0.4% from the previous month, marking the largest increase since February last year. The index rose 0.1% in December, which was revised downward from the initial 0.2% rise.

Services rose 0.6%, an acceleration from December’s 0.3% rise. This was driven by a 0.6% rise in housing and utility costs. Financial services and insurance also rose 1.3%. This appears to reflect the rise in stock prices. Food, lodging, entertainment and health care costs also rose.

PCE services, which exclude housing and energy, which Fed officials focus on as a “super core,” rose 3.5% from a year earlier, an acceleration of growth from December’s 3.2% rise. It also increased by 0.6% compared to the previous month. It rose 0.3% in December.

Personal consumption spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2%. In December, it increased by 0.7%. After adjusting for inflation, it decreased by 0.1%. In December, it increased by 0.6%.

Personal income increased by 1.0% from the previous month, and wages rose by 0.4%.

The savings rate rose to 3.8% from 3.7% in December.

“Consumer spending will continue to rise gradually into 2024, albeit at a slower pace than in 2023, as job and wage growth slows,” said Gus Faucher, chief economist at PNC Financial in Pittsburgh. . “The economic expansion will continue through the end of this year and into next year,” he said.

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2024-02-29 20:09:00
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