U.S. Core PCE Index Expected To Show Modest Increase In January

According to Odaily, Nick Timiraos, often referred to as the 'Fed's mouthpiece,' has indicated that the U.S. Core Personal Consumption Expenditures (PCE) Index for January is anticipated to show a modest increase. This expectation arises due to the weak performance of the Producer Price Index (PPI) components related to finance and healthcare services in January. The monthly rate of the Core PCE Index is expected to be significantly lower than the substantial rise seen in the Consumer Price Index (CPI) for the same period. If the Core PCE Index rises by 0.27% month-over-month in January, it could lead to a decrease in the annual Core PCE rate from 2.8% to 2.6%.