#PCEMarketWatch
The PCE (Personal Consumption Expenditures) report, a key measure of inflation, is under close watch by markets for signs of shifting economic trends. The PCE Price Index, which tracks changes in the cost of goods and services consumed by households, recently showed a 2.6% annual increase, while core PCE—which excludes food and energy—rose 2.8% year-over-year. These figures play a critical role in shaping monetary policy, particularly decisions on interest rates. Investors are closely analyzing the data to anticipate potential rate cuts, which could influence both currency and equity markets. The report’s insights into consumer spending and inflationary pressures are essential for guiding expectations around economic growth and future inflation.
