economy
Entered2024.04.26 22:43 Modified2024.04.26 22:43
A higher rate of 0.3% compared to the previous month… The financial market, which had been preparing for a ‘surprising rebound’, was released and the inflation index priced by the Federal Reserve, the central bank of the United States, stopped States, slowed down and stagnated even in March. The US Commerce Department announced on the 26th (local time) that the core personal consumption expenditure (PCE) price index, excluding energy and food, rose 2.8% in March compared to the same month last year.
It showed the same rate of increase as February (2.8%) and slightly exceeded the expert forecast drawn up by Dow Jones (2.7%).
The representative PCE price index, which includes energy and food, rose 2.7% compared to the same month last year, also exceeding experts’ expectations (2.6%). Compared to the previous month, both the core index and the representative index rose by 0.3% since February, meeting market expectations.
The PCE price index for January and February was not adjusted from current figures.
In March, personal consumption expenditure increased by 0.8% and personal income increased by 0.5% compared to the previous month. The market had expected the PCE price index growth rate in March to remain unchanged in the mid to high 2% range, so it was somewhat of a relief that there were no ‘surprise results’.
After the announcement of the PCE price index, the New York stock market index opened strongly, and the yield on 10-year US Treasury bonds was 4.66%, down 2bp (1bp = 0.01% point) from just before the index announcement.
On Wall Street, based on the first quarter gross domestic product (GDP) indicator published the previous day, it was predicted that the price index for January and February could be adjusted upwards or that the price index in March could be higher than expected. The core PCE price index rate of increase for the first quarter published the previous day was 3.7% (annualized), which was higher than expected, raising concerns about continued inflation.
George Matello, chief investment officer at Key Bank, said, “The PCE inflation report didn’t come out as high as feared,” and added, “There’s still a possibility of an interest rate cut, but it’s not certain.”
“The labor market needs to weaken before the Fed can be confident about cutting interest rates,” he said.
The PCE Price Index is an indicator that measures the prices US residents pay when purchasing goods and services. The Federal Reserve uses the PCE price index instead of the Consumer Price Index (CPI) as a standard when determining whether monetary policy goals have been achieved.
/happy news
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