The highest in nearly 39 years!The core PCE price index rose 5.2 percent in January

2022-05-25 0 By

The core PCE price index rose to 5.2 percent in January from 4.9 percent last month, the highest level since April 1983, zhitong Finance APP said.The U.S. core PCE price index came in at 0.5% m/m in January, in line with expectations, versus 0.5% previously.Us January PCE price index y/y 6.1% vs. 6% exp. 5.8% last, highest since January 1982.For markets, inflation has been front and center because U.S. prices have been rising at their highest levels since the 1970s and early 1980s, and if inflation remains hot, the Fed will inevitably raise interest rates aggressively to tamp it down as well.Data released Friday showed energy prices rose 1.1 percent in January, while food prices rose 0.9 percent.Services inflation cooled slightly, rising 0.4 per cent.Wages, however, rose 0.5% in January, down slightly from a 0.7% gain the previous month.Salaries and bonuses rose 9.3 percent in 2021, compared with just 1.3 percent the year before.The Fed’s massive injection of cash has kept demand for commodities and investment high.The same report showed us personal spending at 2.1% m/m in January vs. 1.6% exp. -0.6% last.This indicates high household consumption, high investment demand, healthy financial health and a strong economy.In addition, a separate report showed that us durable goods orders in January, the preliminary reading of 1.6%, expected 1%, the previous reading of -0.7%;The measure, which posted its biggest gain in four months, beat expectations and was consistent with the resilience of capital spending, pointing to steady growth in manufacturing.Resilient demand for equipment is expected to support factory output and boost economic growth.The figures suggest business equipment investment got off to a strong start in the first quarter.The increase in total durable goods orders reflected increases in orders for commercial aircraft, computers, machinery and metals.Still, production has been complicated by transport bottlenecks and shortages of labor and materials.