US core PCE inflation indicator is due Friday – what's expected

<p>The Core Personal Consumption Expenditures (Core PCE) data is due at 1230 GMT, which is 0830 US Eastern time:</p><p>You can see the median consensus estimates for the y/y and m/m below.</p><p>The ranges of estimates are:</p><ul><li>for the y/y 3.5 to 3.8</li><li>for the m/m 0.2 to 0.3</li></ul><p>The Core Personal Consumption Expenditures (Core PCE) is published by the U.S. Department of Commerce's Bureau of Economic Analysis (BEA) each month.</p><ul><li>Its an economic metric that measures the changes in prices of goods and services purchased by consumers in the United States, excluding the volatile food and energy categories. </li><li>The primary purpose of tracking the Core PCE is to gauge underlying inflation trends. By excluding the often-volatile food and energy sectors, it aims to provide a clearer view of the inflationary (or deflationary) pressures in the economy.
</li><li>The Core PCE is one of several inflation measures, another prominent one being the Consumer Price Index (CPI). While both metrics aim to measure inflation, they have different methodologies and cover different baskets of goods and services. </li><li>The Federal Reserve tends to favor the PCE as an inflation guide because it believes the PCE captures consumer substitution between goods more effectively than the CPI does.
</li><li>The PCE includes a broad range of spending by households, encompassing both durable and nondurable goods, as well as services. This provides a comprehensive view of consumer spending patterns.
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Release and Source: The U.S. Department of Commerce's Bureau of Economic Analysis (BEA) releases the PCE data monthly. </li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.