Yardni Research Chairman Ed Yardni analyzed new economic data amidst the market weakness on earning money.
Federal Reserve’s favorite inflation gauge increased prices as expected in January, which remains above the central bank’s target level as its efforts to reduce inflation continue.
The Department of Commerce said on Friday that the individual consumption expenditure (PCE) index was 0.3% from the earlier month and 2.5% on an annual basis. Those figures were in line with the estimates of economists voted by LSEG.
The core PCE, which excludes unstable food and energy prices, corresponds to estimates 0.3% for the month and 2.6% from a year ago.
Federal Reserve Policy Manufacturers are focusing on PCE headline figure as they try to slow down their target speed of 2%, although they see core data as a better indicator of inflation. The headline PCE declined slightly by 2.6% in December, while the core PCE fell by 2.9% last month.
The headline PCE showed that the prices of goods increased by 0.5% in January after being relatively flat in recent months. Prices for services last month rose 0.2%, which was a slower speed compared to 0.4% in December.
Wages and salary was up 0.4% in January a month ago, similar to the increase in December.
The individual savings rate as a percentage of disposable income was 4.6% in January, the highest rate since 4.8% in June.
This is a developing story. Please check back for updates.
