Archive · 23 Jan 2026
US Economic Data Shows Inflation Cooling
The latest US economic data shows that inflation is slowing down, with prices rising at a slower pace.
The PCE inflation rate, which the Federal Reserve watches closely, is now at 2.8%, and the core PCE inflation rate, which doesn't include food and energy, is at 2.9%.
This means prices are not going up as fast as they were before.
At the same time, the number of people applying for unemployment benefits, called jobless claims, rose slightly to 200,000, but this is still lower than expected, showing that the job market is stable.
The economy is also growing strongly, with the GDP, which measures the total value of goods and services produced, growing at a rate of 4.4% in the third quarter of 2025.
This growth was helped by consumer spending, exports, government spending, and business investment.
The stock market also did well, with major indices like the Dow Jones, S&P 500, and Nasdaq Composite all going up.
Gold prices went down a bit because people felt more confident about the economy.
US PCE inflation cools to 2.8%, core PCE inflation at 2.9%, moving closer to the Fed's 2% target.
Initial jobless claims rise slightly to 200,000, below economists' expectations of 210,000.
Continuing jobless claims drop by 26,000 to 1.849 million, indicating stable employment.
Real GDP grows at an annualized rate of 4.4% in Q3 2025, up from 3.8% in the previous quarter.
Stock market gains as geopolitical tensions ease and strong GDP data is released.
- Who
- US Bureau of Economic Analysis, US Department of Labor, Wall Street investors
- What
- US PCE inflation cools to 2.8%, jobless claims rise to 200,000, GDP growth at 4.4%, stock market gains
- When
- Data released on Thursday, January 17, 2025
- Where
- United States
- Why
- To assess economic conditions, inflation trends, and market reactions
Optimists
Pessimists
Economic Growth
Optimists
The strong GDP growth of 4.4% indicates a robust economy with positive momentum.
Pessimists
Despite the growth, inflation and jobless claims could pose risks to sustained economic stability.
Inflation Trends
Optimists
The cooling of PCE inflation to 2.8% suggests the Fed's policies are working effectively.
Pessimists
Core PCE inflation remains above the Fed's 2% target, which could lead to further policy tightening.
Job Market
Optimists
The slight rise in jobless claims to 200,000 is still below expectations, indicating a stable job market.
Pessimists
The increase in jobless claims, even if modest, could signal potential weaknesses in the labor market.
- PCE inflation rate
- 2.8%
- Core PCE inflation rate
- 2.9%
- Initial jobless claims
- 200,000
- Continuing jobless claims
- 1.849 million
- Real GDP growth (Q3 2025)
- 4.4%
- Dow Jones Industrial Average change
- +0.81%
- S&P 500 change
- +0.70%
- Nasdaq Composite change
- +0.97%
- Spot gold price
- $4,819.39 per ounce
- Spot silver price
- $93.47 per ounce
Sources
US PCE inflation at 2.8% as jobless claims come in at 200,000
Wall Street gains on tariff relief, strong GDP data
Consumer spending pushes US economy up 4.4% in third quarter, fastest in two years
Why 200K jobless aid report is the new red flag for the American middle class
India’s private sector growth rebounds in January as demand strengthens, PMI shows
India’s private sector activity skyrockets to 11-month high of 59.5 in a huge January rebound
