US: Annual Core PCE Price Index arrives at 1.5% in December vs. 1.3% expected

• Core PCE inflation in US rose more than expected in December.
• US Dollar Index stays near 90.50 after the data.

The Personal Consumption Expenditures (PCE) Price Index in December edged higher to 1.3% from 1.1% in November, the report published by the US Bureau of Economic Analysis showed on Friday. On a monthly basis, the PCE Price Index rose to 0.4% from 0%.

More importantly, the Core PCE Price Index, the Federal Reserves preferred measure of inflation, ticked up to 1.5% and came in higher than the market expectation of 1.3%. 

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen at 90.45, where it was virtually unchanged on the day.