The biggest cut to pce comes in 2015 with 5 points lopped off the lower range to 1.0% and 2 points off the upper to 2.2%
In the more important core we’ve only seen a mild trimming. The upper range for this year is down to 1.6% from 1.8% and in 2015 we’re at 1.5% from 1.6% on the lower and 2.2% from 2.4% in the upper. There’s a pip lost both sides in 2016.
That suggests that 1. the Fed see these price moves as temporary and 2. That domestic prices will remain firm. We’ll have to see whether the highlight wage growth being behind the stable core numbers.
Yellen’s up talking now so we’ll see if wages are mentioned.
