US: Annual core PCE Price Index ticks down to 1.6% in November as expected

• Fed's favourite inflation guage fell to 1.6% in November as expected.
• Stronger-than-expected increase in Personal Income provides a boost to USD.

The core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve preferred gauge of inflation, ticked down to 1.6% on a yearly basis in November from 1.7% in October and came in line with the market expectation. On a monthly basis, the core PCE Price Index remained steady at 0.1%.

Further details of the publication revealed that Personal Income in the same period increased by 0.5% to beat analysts' estimate for an increase of 0.3% while Personal Spending rose to 0.4% from 0.3%.

The US Dollar Index edged higher on the back of the upbeat data and was last up 0.23% on the day at 97.63.