US April PCE core 1.2% y/y vs 1.3% expected

Details of the April PCE inflation numbers:

• Prior core y/y was 1.3%
• Core m/m 0.1% vs 0.2% exp
• PCE deflator +0.1% y/y vs +0.2% exp
• PCE deflator 0.0% m/m vs +0.1% exp
• Prior PCE deflator y/y was +0.2%
• No revisions to prior numbers

Soft of the inflation side of the report. There is nothing here that shows a pickup in prices. The Fed's Fischer recently indicated that inflation was rising in importance in his analysis but with numbers like this, there is no reason to worry.