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US: Annual core PCE Price Index stays unchanged at 1.9% in December

The data published by the U.S. Bureau of Economic Analysis on Friday revealed that the Personal Consumption Expenditures (PCE) Price Index increased 0.1% on a monthly basis. Meanwhile, core PCE, the Fed's preferred gauge of inflation, rose 0.2% and 1.9% on a monthly and yearly basis, respectively, to match analysts' estimates.

Key takeaways from the press release

  • Personal income increased $179.0 billion (1.0 percent) in December.
  • Personal income decreased $23.8 billion (-0.1 percent) in January. 
  • Personal outlays decreased $71.3 billion in December.
  • Personal saving rose to $1.21 trillion in December and the personal saving rate, personal saving as a percentage of disposable personal income, was 7.6 percent.

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