US Inflation Ticks Higher, Dollar Slips as Markets Digest PCE Data

US inflation firmed slightly in November, signaling that price pressures remain persistent. The Personal Consumption Expenditures (PCE) Price Index rose to 2.8% year-on-year from 2.7% in October, matching expectations. On a monthly basis, prices increased by 0.2%, pointing to steady, controlled inflation rather than a rapid slowdown.


Core Inflation Keeps Policymakers on Alert

The core PCE index, which excludes food and energy and is closely monitored by the Federal Reserve, also climbed to 2.8% annually. The uptick reinforced concerns that inflation is proving stubborn, complicating efforts to return it decisively to the central bank’s long-term target.


Consumers Still Spending

The data highlighted continued resilience in household demand. Personal income rose by 0.3% in November, while personal spending advanced by a stronger 0.5%, suggesting that consumers remain willing—and able—to spend despite elevated prices.

Dollar Slips on Data Release

Currency markets reacted with modest selling pressure on the US Dollar. The Dollar Index drifted lower toward the 98.50 area as investors digested the inflation figures and weighed the implications for future monetary policy.


The Bigger Picture

November’s PCE report reinforced a familiar narrative: inflation is easing only gradually, consumer activity remains solid, and financial markets remain highly sensitive to any data that could reshape expectations for interest rates in the months ahead.