USA inflation stays put

The core inflation in the USA was unchanged at 2.8 per cent in December, according to the so-called PCE measure. The development was in line with expectations.

The PCE inflation is seen by the USA's central bank Federal Reserve (Fed) as the most important price increase measure when decisions on future interest rates are to be made.

In contrast to the more common CPI measure of inflation, which is based on a basket of goods, the PCE inflation is calculated on what is actually consumed.

The Fed's inflation target is 2 per cent.