US PCE jumps in December; yields slump on coronavirus news

31 January 2020

 

One of the US Fed’s favoured measures of inflation is the change in the core personal consumption expenditures (PCE) price index. After hitting the Fed’s target at 2.0% in mid-2018, the annual rate then hovered in a range between 1.8% and 2.0% through to the end of 2018 before dropping in the first quarter of 2019 to around 1.5%. It then ranged between 1.5% and 1.8% for the rest of...

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