#USCorePCEMay
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¡Economic Alert 🚨! What's up with the US Core PCE for May? 🤔
Hello to all the economics enthusiasts! 👋 Today we are going to unravel a term you have surely heard around and that is super important to understand how the economy of the United States is doing: the US Core PCE. And yes, the data for May is about to come out!
But what is this "Core PCE"? 🧐
Imagine the government wants to know how fast the prices of the things Americans buy every day are rising. The PCE (Personal Consumption Expenditures) is like the giant shopping list of the whole country. It measures how much we spend on goods and services.
Now, the "Core" is a little different. To get a clearer picture of the underlying inflation (the one that isn't a momentary "spike"), economists remove the prices of food and energy from the calculation. Why? Because these prices can rise and fall very quickly due to things like weather or international conflicts, and they don't always reflect the general price trend.
So, the US Core PCE is the Federal Reserve's (the central bank of the U.S.) favorite gauge to see inflation, without the noise of sharp changes in food and energy! It tells us whether the prices of "essentials" are rising or falling consistently.
And what happened in May? 📊
Well, that's what we are waiting for. That index, that highly anticipated percentage will decide a lot, especially the interest rates that the North American FED will raise (or we hope, lower).
WATCH OUT