The Dow Jones (DJIA) is set to open Friday lower after a higher-than-expected inflation reading from the Bureau of Economic Analysis (BEA).
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Trade QQQ with leverageIn December, the Personal Consumption Expenditures (PCE) Index rose by 0.4%, up from 0.2% in November and above the estimate of 0.3%. On an annual basis, PCE increased by 2.9% compared to 2.8% during the prior month and topped the estimate of 2.8%. That marks the highest annual rate since March 2024.
Fed’s Preferred Inflation Gauge Runs Hot
Core PCE, which excludes volatile food and energy prices, notched a monthly increase of 0.4% and a year-over-year jump of 3%, the highest since February 2025. Analysts were expecting 0.3% and 3%, respectively.
PCE tracks changes in the prices consumers pay for goods and services over time, while core PCE is the Fed’s preferred gauge of inflation.
Earlier this week, the Fed’s minutes showed that several officials supported hiking interest rates if inflation remains above 2%.