The US Core Personal Consumption Expenses Index (PCE) was announced as 4.4. (Exp. 4.4%)
Monthly data was announced as 0.3%, in line with expectations.
US Core Personal Consumption Expenses Index (PCE) announced as 4.4
— Bitcoin System (@bitcoinsystem) January 27, 2023
How Did Bitcoin React to the US Data?
bitcoin The price reacted to the development with a bullish response at first, but later dropped to its pre-data level:
Inflation, as measured by the Personal Consumption Expenditure (PCE) Price Index, fell to 5% year-on-year in December from 5.5% in November, the US Bureau of Economic Analysis reported on Friday.
In the US, the cost of goods and services rose by as little as 0.1% in December, giving another sign that inflation has subsided, leaving the US Federal Reserve to stop raising interest rates soon.
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According to the PCE index, the data the FEd prefers to use, the inflation rate has fallen sharply since last summer. Falling oil prices have played a large part in this, but inflation is trending more broadly.
Annual rise in prices fell 5.5% the previous month and 7% last summer, down from a 40-year high to 5% in December, according to new US government data.
While this is the smallest rise in the last 15 months, it is still well above pre-pandemic levels where annual inflation was below 2%.
The more closely watched core index rose modestly 0.3% last month, in line with Wall Street’s forecasts.
In the last 12 months, the increase in the core inflation rate decreased from 4.7% to 4.4%. This is also the lowest level in the last 14 months.
*Not investment advice.