The upcoming release of the December core Personal Consumption Expenditures (PCE) price index on February 20 is expected to provide insights into the U.S. Federal Reserve's progress toward its 2% inflation target. The most recent core PCE inflation rate, from November last year, was 2.8%. Current forecasts suggest that the December core inflation will remain at 2.8%. Historically, the Consumer Price Index (CPI) has averaged about 0.5 percentage points higher than the PCE. U.S. Treasury Secretary Bentsen previously indicated that inflation could return to the Fed's target by mid-year.
Upcoming PCE Data to Indicate Progress Toward Fed's Inflation Target
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