Fourth-quarter GDP revised down to just 0.7% growth; January core inflation was 3.1%
The PCE price index for January was expected to show headline inflation at 2.9% and core at 3.1%.
Key context
- Source
- CNBC — established analytical coverage
- Scope
- North America · US
- Theme
- Inflation, Growth, Markets
- Signals
- CPI, core PCE, wage growth
Why it matters
If readings around january core inflation remain elevated, central banks face pressure to delay rate cuts, keeping real borrowing costs high and weighing on credit growth. Should fourth-quarter gdp revised feed through to wage negotiations, a price-wage spiral would extend the tightening cycle and widen sovereign bond spreads. A credible decline in core measures would reopen the door to easing and compress front-end yields.
InflationGrowthMarketsUS
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