The US Federal Reserve’s preferred inflation indicator eased to 3.9% in the fourth quarter of last year, down from 4.7% in the third quarter, according to the Commerce Department figures released Thursday.
The core personal consumption expenditures (PCE) price index also came lower than the market estimate of 4%.
The PCE price index, which includes food and energy prices, increased 3.2% in October-December 2022, also softening from a 4.3% gain in the July-September period.
The softening in the quarter-to-quarter figures is a result of the Fed’s aggressive monetary tightening cycle and interest rate increases last year.
In 2022 overall, however, the core PCE price index increased 5%, accelerating from a 3.5% gain in 2021, the Commerce Department said.
PCE price index, including food and energy prices, rose 6.2%, also picking up pace from 4% in 2021.
The overall annual gains in the figures are a result of consumer prices significantly picking up pace in 2022, compared to the year before.Read more: US Fed’s inflation indicator eases to 3.9% in Q4, from 4.7% in Q3 of 2022[Anadolu Agency (Turkey)]
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