US December PCE Inflation

Now the FOMC may cut rates as early as March.

On a 3-month basis (annualized rate), inflation dropped to:

Headline PCE: +0.50%

Core PCE: +1.52%

Super Core PCE: +2.08% - practically every series is at or below 2%!

On a 12-month basis, i.e. YoY:

Headline PCE: +2.60%

Core PCE: +2.93%

Super Core PCE: +3.32%

According to Inflation Nowcast (Cleveland FED), YoY inflation will be in January 2024:

Headline PCE: +2.19%

Core PCE: +2.66%

Figure 1 shows 3 series of PCE inflation on an annual and monthly basis.

Figure 2 shows both the annual and 3-month change for the last 5 months.

Figure 3 shows the same for CPI inflation.