PT Solid Gold Berjangka | Fed’s Favored Inflation Gauge Cools, Spending Unexpectedly Drops
Ekonomi AS CORE PCE Core PCE Price Index m/m PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | The Fed’s preferred measure of U.S. inflation is a step in the right direction for policymakers seeking reassurance that they can start lowering interest rates.
The so-called core consumer spending price Index, which removes volatile food and energy components, rose 0.2 percent from the previous month, data on Friday showed. From a year ago, measures rose 2.8%.
Economists see the core gauge as a better gauge of inflation than the overall index. The indicator rose 3% from the month to 0.3% and 2.7% from the previous year.
Inflation-adjusted consumer spending unexpectedly fell 0.1%.
The report provides some comfort to Fed officials about the path of inflation after progress in price pressure was interrupted in Q1.
Treasury yields fell, S&P 500 index futures rose and the dollar index fell. Swap traders expect the Fed to cut interest rates at least 1 times this year.
Central banks pay close attention to inflation in services, excluding housing and energy, which tend to be more sticky. According to the BEA, that indicator rose 3 percent after rising 0.4 percent in the month to 0.3 percent.
Source: Bloomberg