Market Wire, North America

The Federal Reserve’s preferred inflation measure exceeded expectations in January, bolstering the case for continued tightening in the months ahead. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index – targeted by the Fed – rose 0.6 percent in January from the prior month, up 4.7 percent year-over-year – topping consensus estimates. The overall personal consumption expenditures index was up 5.4 percent from a year ago, well above forecasts.  Personal income rose 0.6 percent month-over-month, led by a 0.9-percent increase in private sector wages and salaries, along with a substantial jump in...

US consumer prices fell as expected in December, lending more plausibility to the Federal Reserve’s “soft landing” scenario, while leaving longer-term interest expectations largely unmoved relative to pre-release levels. According to data published by the Bureau of Labor Statistics this morning, the headline consumer price index rose 6.5 percent in December from the same period last year, down -0.1 percent on a month-over-month basis. Economists polled by the major data providers ahead of the release projected a 6.5 percent annual gain and a -0.1 percent drop relative to November. A seasonally-adjusted -9.4 percent month-over-month drop in gasoline prices did a...