Fed sound bite: weakness in some areas of PPI may affect January core PCE
According to Golden Ten, Nick Timiraos, the ‘Fed's sounding board’, said that the monthly core PCE index rate is expected to fall well short of yesterday's sharp rise in the monthly CPI rate due to weakness in the PPI components that make up the PCE index (financial and health care services subcomponent) in January.
A 0.27% rise in core PCE in January would reduce the annual core PCE rate to 2.6% from 2.8%.
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