#PCEInflationWatch

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Remember that you are playing with the smartest people in the world, and there is no trader who doesn't lose.. Trading is about profits and losses.

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Inflation, measured by the Personal Consumption Expenditures (PCE) index, rose 2.6% in the year ending in December, up from 2.4% in November and in line with forecasts. This indicates that inflationary pressures are still increasing, making the Federal Reserve's (Fed) annual target of 2% increasingly elusive. In this context, Fed officials are becoming more cautious about cutting key interest rates, as this could lower borrowing costs but also drive inflation to continue rising.

The Personal Consumption Expenditures (PCE) price index is an important measure of inflation in the US, reflecting price fluctuations of goods and services that consumers purchase. The Federal Reserve closely monitors this index to guide monetary policy.

As of December 2024, the PCE price index increased by 0.3% compared to the previous month, raising the annual inflation rate to 2.6%, higher than the 2.4% in November. Core PCE, which excludes food and energy, rose 0.2% month-on-month and maintained a year-on-year rate of 2.8%.

This data indicates that inflation remains above the Federal Reserve's 2% target, increasing the likelihood that the central bank will delay interest rate cuts to manage inflationary pressures.

To track PCE inflation developments in real time and for in-depth analysis