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#Economic Report: Coming up: PCE inflation index and consumer spending

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“#Economic Report: Coming up: PCE inflation index and consumer spending”

PCE index forecast to rise sharply in January and stay near highest level since early 1980s

The core PCE inflation index is forecast to increase 0.5% in January, according to economists polled by The Wall Street Journal. The core figures strip out food and energy and is viewed by the Federal Reserve as a more reliable predictor of price trends. The headline PCE index is expected to rise by a similar percentage.

Consumer spending is forecast to rise 1.6%.

The report will be released at 8:30 a.m. Eastern by the Bureau of Economic Analysis. In the 12 months ended in December, the PCE index rose at a 5.8% yearly rate.

Jeffry Bartash

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