The headline personal consumption expenditure (PCE) price index rose 0.7 percent year over year in December, down from its November pace of 1.2 percent year over year. Core PCE price inflation, which excludes food and energy, rose 1.3 percent year over year in December, a one-tenth of a percentage point decrease from November. At a one-month annualized rate, PCE headline inflation fell 2.8 percent in December, a further decrease from November's decline of 2.0, and the core figure rose 0.1 percent, down from 0.2 percent in November. Recent PCE price index data suggest inflationary pressures remain at bay.
