December 23, 2023 (MLN): The U.S. personal consumption expenditure (PCE) for the month of November 2023 went down by 0.1% month-over-month (MoM), marking the first negative monthly reading since July 2022, the latest data issued by the U.S. Bureau of Labor Statistics on Friday showed.
The year-on-year reading for PCE numbers registered at 2.6% YoY, down from 2.9% YoY in October.
Whereas, in the last year, in November 2022, the PCE was 5.5% YoY.
PCE is the preferred measure of inflation of the Federal Reserve, with the main focus on core PCE, which excludes food and energy prices, to see if it meets its target of below 2%.
The core PCE slowed to 3.2% YoY in November from 3.4% compared to the same period last year.
Meanwhile, monthly Core PCE inflation was steady at 0.1% after a downwardly revised reading in October.
PCE is an indicator of inflation, which measures the prices that people living in the United States, or those buying on their behalf, pay for goods and services.
The PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior.
PCE is released each month, whereas, quarterly and annual data are included in the GDP release.
