Latest inflation data released today shows that price increases are flat and barely rising month over month in the U.S. economy.
In December personal consumption expenditures (PCE) decreased $0.7 billion, or less than 0.1 percent, according to recent data released today from the Bureau of Economic Analysis.
Core Inflation- Fed Reserve’s Preferred Inflation Gauge
The PCE price index, excluding food and energy, increased less than 0.1 percent, compared to an increase of 0.2 percent in November.
The reading in November was revised higher to 0.2 percent from 0.1 percent.
The December PCE price index increased 0.6 percent from December a year ago.
Excluding food and energy, the December PCE price index increased 1.4 percent from December a year ago and remains below the Federal Reserve’s 2 percent inflation target.
Real PCE increased 0.1 percent, compared with an increase of 0.4 percent.
Personal income increased $42.5 billion, or 0.3 percent, matching the same level, 0.3 percent in November.
Personal income increased 4.5 percent in 2015 on an annualized basis compared with an increase of 4.4 percent in 2014.
Disposable personal income (DPI) increased $37.8 billion, or 0.3 percent, in December.
Personal consumption expenditures (PCE) decreased $0.7 billion, or less than 0.1 percent.