By Ovunc Kutlu
ISTANBUL (AA) - The US Federal Reserve's preferred inflation indicator eased annually to a 4.4% gain in December 2022, down from a 4.7% increase in November, according to the Commerce Department figures released Friday.
The core personal consumption expenditures (PCE) price index was in line with the market estimate on an annual basis.
Monthly though, the index showed a gain of 0.3% in December from 0.2% in November, also as expected by the market.
The PCE price index, which includes food and energy prices, increased 5% annually in last month, also softening from a 5.5% year-on-year gain in November.
On a monthly basis, that index showed gains of 0.1% in December, following a 0.1% increase in November.
The softening in the year-on-year figures in both indexes is a result of the Fed's aggressive monetary tightening cycle and interest rate increases last year.
The US central bank made a total of 425 points rate hikes on seven occasions last year to fight record-high inflation that climbed to its highest level in over 40 years by mid-2022.
The Fed's first 2023 two-day meeting will conclude next Wednesday and widely expected to result in a 25-basis-point rate hike.