The US Personal Consumption Expenditures price index (PCE) increased by 0.1% in November compared to October and by 4.7% compared to a year ago.
As the world’s most powerful economy made the announcement, BTC reacted with minor price volatility.
- The US Commerce Department outlined the PCE increase on Friday. The metric is typically the go-to point for the Federal Reserve, as it provides a clearer picture of consumer prices.
- The 5.5% jump in the Core PCE (which includes food and energy) is slightly higher than the 4.7% estimation. The report also showed that general spending was also on the rise in November (0.1%) but not as much as in previous months (0.8%).
- On the other hand, personal income increased by 0.4% in November, which is slightly lower than the October figures (0.7%).
- Aside from the more well-known Consumer Price Index (CPI), the PCE is the other most frequently cited index for calculating inflation rates in the States.
- Unlike the CPI announcements, which typically carry a heavy toll on BTC’s price, the PCE brought minor volatility.
- The primary cryptocurrency dipped by a few hundred dollars from its familiar ground of $16,800 before it pumped to a daily high of over $16,900.
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