Personal Spending and Income on the Rise

In an encouraging sign for the US economy, personal spending saw a significant increase of 0.7% in December, as reported by the Bureau of Economic Analysis. Alongside, personal income also experienced a boost, adding $92 billion or 0.4% on a monthly basis.

Inflation Trends in Focus

The personal consumption expenditures (PCE) price index, a key measure of inflation, rose by 0.3% month-on-month. This increase aligns with expectations, showcasing a 2.6% growth. Notably, the annual core PCE inflation, which excludes volatile food and energy prices, stood at a higher rate of 2.8%, indicating sustained inflationary pressures.