U.S (PCE) Index Shows Modest Growth, Below Expectations

Economic data released today, Friday, revealed a slower-than-expected increase in the Personal Consumption Expenditures (PCE) index for November, which is the Federal Reserve's preferred measure of inflation. The index grew by 0.1% month-on-month, falling short of market expectations of a 0.2% rise. The previous reading for October showed a growth of 0.3%.

On an annual basis, the PCE index remained steady at 2.8% year-on-year in November, slightly below market expectations, which had predicted an increase to 2.9%. This indicates a continued easing of inflationary pressures in the U.S. economy.

The PCE index is a key inflation gauge, reflecting changes in the prices of goods and services consumed by individuals, excluding food and energy. It is widely regarded for its ability to offer a more comprehensive view of consumer behavior, as it encompasses total spending across a variety of categories. This makes the PCE index a more inclusive and accurate measure of inflation compared to the core Consumer Price Index (CPI).