US Dec. core PCE rises 0.4% MoM, beating forecasts

The U.S. core Personal Consumption Expenditures (PCE) Price Index for December rose by 0.4% month-over-month, exceeding expert forecasts of 0.3%, the U.S. Bureau of Economic Analysis (BEA) announced. On a year-over-year basis, the index increased by 3%, also surpassing the projected 2.9%. The core PCE index, which excludes volatile food and energy prices, is the Federal Reserve's preferred measure of inflation. Separately, the U.S. Department of Commerce reported that gross domestic product (GDP) grew at an annualized rate of 1.4% in the fourth quarter, falling short of the market expectation of 2.8%.