The United States is set to release the January Personal Consumption Expenditures (PCE) price index, with expectations of a 2.9% year-over-year increase, consistent with the previous reading, and a 0.3% month-over-month rise, slightly down from December's 0.4%. Core PCE is projected to climb 3.1% year-over-year, marking the highest increase since April 2024, while maintaining a 0.4% month-over-month growth.
Economists have adjusted their forecasts for the February core PCE price index, anticipating a 0.4% rise, with some predicting even higher increases. This adjustment follows the latest Consumer Price Index (CPI) data, which highlighted differences in inflation measurement, particularly in housing and used car prices. Analysts from Barclays, Morgan Stanley, and Bank of America foresee a significant 0.8% rise in core PCE prices for February, driven by increased costs in goods like computer software and jewelry. The PCE index, typically more moderate than CPI, is now showing signs of acceleration.
U.S. January PCE Data Anticipated to Rise, Core Inflation Hits 2024 Peak
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