Core PCE Inflation Matches Forecast, GDP Price Growth Runs Hotter Than Expected

The Core PCE Price Index rose 0.2% month-over-month, landing right in line with forecasts and ticking up slightly from the previous 0.1% reading. This gauge, closely watched by the Federal Reserve for tracking underlying inflation, suggests price pressures remain steady rather than accelerating sharply.

GDP Growth Stays Flat, Price Index Surprises

Preliminary GDP growth came in at 1.5% quarter-over-quarter, matching both the forecast and the prior reading, pointing to a steady but unspectacular pace of economic expansion.

However, the GDP Price Index told a different story, climbing 6.4% compared to expectations of 6.2% and the previous 6.2% figure. That gap between growth and pricing data may draw attention from analysts watching how inflation pressures are building even as output holds steady.