Economic calendar: Fed's preferred indicator, core PCE expected to drop to 3.0% YoY 🔔

In today's economic calendar, the only and most important event of the day will be the publication of the PCE inflation report in the USA at 1:30 PM GMT. The core Personal Consumption Expenditures (core PCE) index is the inflation indicator preferred by the Federal Reserve. The data should confirm a continued approach towards the 2.0% inflation target. The expected data is projected to show a year-over-year decrease to 3.0% compared to 3.2% in November. The inflation picture looks promising. In addition to progress at the core level, the headline PCE inflation also fell to 2.6% in November and is expected to remain at the same level in the December reading.

Detailed calendar of the day:

07:00 AM GMT, Germany - GfK German Consumer Climate for February:

• forecast -24.5; previous -25.1;

01:30 PM GMT, United States - Inflation Data for December:

• PCE Price index: forecast 2.6% YoY; previous 2.6% YoY;
• Core PCE Price Index: forecast 0.2% MoM; previous 0.1% MoM;
• Core PCE Price Index: forecast 3.0% YoY; previous 3.2% YoY;
• Personal Spending: forecast 0.4% MoM; previous 0.2% MoM;
• Real Personal Consumption: previous 0.3% MoM;
• PCE price index: forecast 0.2% MoM; previous -0.1% MoM;

03:00 PM GMT, United States - Pending Home Sales for December:

• forecast 1.5% MoM; previous 0.0% MoM;

03:00 PM GMT, United States - Pending Home Sales Index for December:

• previous 71.6;