December's US consumer spending saw a plunge, gearing the economy towards slower growth rate for the year, meanwhile inflation carried on with its ticked down path, which implies for expected eased rate hikes from Fed's side.

As reported by the Commerce Department the consumer spending for the earlier month slipped by 0.2%, where expectations hovered around 0.1% slump according to a poll conducted by Reuters.

On the other hand, the personal consumption expenditure for December advanced by 0.1% following the same path of November's raise. On a yearly basis, PCE grew 5.0% post earlier edge in November by 5.5%.

By eliminating the volatile food and energy, PCE ticked up 0.3% from an earlier advance of 0.2%.On YoY basis it rose by 4.4% from earlier climb of 4.7%.

The PCE price is considered as a major gauge for Fed as it is one of the factors that affect the interest rate trajectory.