US: Annual core PCE Price Index ticked up to 1.6% in December as expected

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Inflation in the United States, as measured by the Personal Consumption Expenditures (PCE) Price Index, rose 0.3% on a monthly basis in December following November's reading of 0.1%, the data published by the US Bureau of Economic Analysis reported on Friday.

This figure came in better than the market expectation of 0.1%. On a yearly basis, the PCE Price Index came in at 1.6% to fall short of the analysts' estimate of 1.7.

Further details of the report showed that the Federal Reserve preferred gauge of inflation, the core PCE Price Index, which excludes volatile food and energy prices, rose 1.6% and 0.2% on a yearly and monthly basis, respectively.

USD reaction

The greenback's reaction to the data was largely muted and the US Dollar Index was last down 0.12% on the day at 97.75.