Personal Consumption Expenditures (PCE) data, which is of critical importance in the USA, has finally been announced. In addition, US Initial Unemployment Claims data was also published.
- US Core PCE Price Index Annual: 4.2% (Expected: 4.2%, Previous: 4.1%)
- US Core PCE Price Index MoM: 0.2% (Exp.: 0.2%, Previous: 0.2%)
- US Initial Jobless Claims: 228k (Expected: 235k, Previous: 230k)
The first reaction in Bitcoin after the development was as follows:
This inflation measure preferred by the FED was expected to show that prices continued to increase in July and that the downward trend seen in recent months was broken.
In his speech in Jackson Hole last week, Federal Reserve Chairman Jerome Powell emphasized that officials tend to follow the core PCE more closely because it is more affected by global factors that keep food and energy prices volatile and therefore can provide a misleading view of US inflation.
In his speech on August 25, Powell stated that core PCE inflation peaked at 5.4% in February 2022 and has gradually declined in recent months. However, he underlined that it is still unclear to what extent this decline will continue or where inflation will settle in the coming quarters.
“Twelve-month core inflation remains high and there is still a significant distance to go to return to price stability,” Powell said last week.
*This is not investment advice.