US inflation continued its gradual descent in December, adding to hopes that a soft landing is within reach.
The Personal Consumption Expenditures (PCE) Price index increased 0.2 per cent last month, up from a 0.1 per cent drop in November, the Commerce Department reported on Friday. On an annual basis, PCE inflation remained unchanged at 2.6 per cent.
Core PCE inflation – which excludes food and energy – rose 0.2 per cent last month, up from a 0.1 per cent rise in November. It eased to 2.9 per cent per cent annually after a 3.2 per cent increase in November.
Economists surveyed by The Wall Street Journal expected core PCE inflation would rise 0.2 per cent in December and 3 per cent on an annual basis.
Consumer spending – which accounts for roughly 70 per cent of economic activity – increased 0.7 per cent in December.
Separate federal data released on Thursday showed PCE inflation for the last three months of the year eased to 1.7 per cent, while core PCE rose 2.0 per cent – both within the Fed's 2 per cent goal.
The latest batch of economic data indicated continued momentum towards a soft landing as inflation shows signs of moderation, consumer spending remains strong and layoffs remain low.
Friday's report is the final piece of inflationary data before the Federal Reserve's monetary policy meeting next week. The central bank is expected to hold interest rates steady at 5.4 per cent.
The Fed closely monitors core PCE data when making its monetary policy decisions.
While keeping rates steady at the conclusion of their January meeting is a near certainty, traders will be looking for clues for when the Fed may begin cutting rates.
Projections released by the Fed showed it expects three quarter-rate cuts this year, although it has not suggested when that might begin.
Markets are split over when the Fed may cut rates after January. According to the CME Group, 48 per cent believe the first rate cut will happen in March, while 50 per cent think it will be in May.
The Fed meets on January 30-31.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Six things you need to know about UAE Women’s Special Olympics football team
Several girls started playing football at age four
They describe sport as their passion
The girls don’t dwell on their condition
They just say they may need to work a little harder than others
When not in training, they play football with their brothers and sisters
The girls want to inspire others to join the UAE Special Olympics teams
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Brighton 1
Gross (50' pen)
Tottenham 1
Kane (48)
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Fighter profiles
Gabrieli Pessanha (Brazil)
Reigning Abu Dhabi World Pro champion in the 95kg division, virtually unbeatable in her weight class. Known for her pressure game but also dangerous with her back on the mat.
Nathiely de Jesus, 23, (Brazil)
Two-time World Pro champion renowned for her aggressive game. She is tall and most feared by her opponents for both her triangles and arm-bar attacks.
Thamara Ferreira, 24, (Brazil)
Since her brown belt days, Ferreira has been dominating the 70kg, in both the World Pro and the Grand Slams. With a very aggressive game.
Samantha Cook, 32, (Britain)
One of the biggest talents coming out of Europe in recent times. She is known for a highly technical game and bringing her A game to the table as always.
Kendall Reusing, 22, (USA)
Another young gun ready to explode in the big leagues. The Californian resident is a powerhouse in the -95kg division. Her duels with Pessanha have been highlights in the Grand Slams.
Martina Gramenius, 32, (Sweden)
Already a two-time Grand Slam champion in the current season. Gramenius won golds in the 70kg, in both in Moscow and Tokyo, to earn a spot in the inaugural Queen of Mats.
