Just In: US PCE Inflation Rises to 2.4%, Crypto Market Braces for Impact

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As a seasoned researcher with over two decades of experience under my belt, I have witnessed countless economic cycles and their impact on various sectors, including cryptocurrencies. The recent US Core PCE inflation data for November 2024 has caught my attention due to its potential implications for the crypto market.

In November 2024, essential US economic data indicated consistent expansion across key indicators. Notably, the Personal Consumption Expenditures (PCE) inflation index experienced a month-to-month increase of 0.1% and a yearly rise of 2.4%. When excluding food and energy costs from the equation, the core PCE index showed a monthly climb of 0.1% and an annual growth rate of 2.8%.

Based on data from the Bureau of Economic Analysis, personal income grew by 0.5%, Disposable Personal Income (DPI) increased by 0.3%, and Personal Consumption Expenditures (PCE) saw a rise of 0.4%. Real disposable income and spending experienced modest increases as well. However, the indicators for inflation, such as the PCE price index, remained relatively low at just 0.1% for the month-on-month comparison.

US Core PCE Inflation Cools: Less Volatility for Crypto?

As a crypto investor, I learned yesterday that personal spending in the U.S. increased by 0.4%, equating to approximately $81.3 billion, according to the latest report from the Bureau of Economic Analysis (BEA).

The PCE price index grew by 0.1% compared to last month, and it climbed by 2.4% when compared to the same period last year. When we remove food and energy costs from the equation, the increase was 0.1% on a monthly basis and 2.8% on an annual basis.

In the previous month, personal income grew by 0.5% or an additional $71.1 billion. At the same time, Disposable Personal Income (DPI) also rose by 0.3%, equivalent to an extra $61.1 billion.

The 0.4% increase in PCE indicates that consumer spending remains strong, buoyed by sectors including automobiles, goods, and leisure activities. This slight uptick in the PCE price index suggests a low inflation rate, which may lead the Federal Reserve to keep its current policy unchanged. For cryptocurrencies, this steady economic climate could translate into reduced volatility because fewer unexpected changes in inflation or income growth will help prevent market disruptions.

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2024-12-20 16:55