PCE Price Index: January Core at 4.7% YoY

This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.

The BEA's Personal Income and Outlays report for January was published on this morning by the Bureau of Economic Analysis. The latest headline PCE price index was up 0.6% month-over-month (MoM) and is up 5.4% year-over-year (YoY). Core PCE rose to 4.7% YoY, still well above the Fed's 2% target rate, and is up 0.6% MoM. All readings came in better than the Investing.com forecasts.

Personal consumption expenditures (PCE) measures and tracks changes for all domestic personal consumption. Core PCE measures the changes in personal consumption less food and energy, making it less volatile than the headline PCE. The PCE Price Index is calculated using PCE data and is a key way to measure changes in purchasing trends and inflation.