US May core PCE 0.2% vs. 0.2% expected.

Highlights of the May PCE report

• Prior was +0.2%. See prior report here.
• Core YoY 2.0% vs 1.9% expected. That is higher than the 1.8% last month too.
• PCE deflator up 0.2% vs 0.2% expected. Prior month 0.2%
• PCE deflatior up 2.3% vs 2.2% expected. Prior month 2.0%
• The YoY is the highest since April 2012

Income/Spending:

• personal income +0.4% versus 0.4% expected. Prior month revised lower to 0.2% from 0.3%
• personal spending 0.2% versus 0.4% expected. Prior month revised lower to 0.5% from 0.6%
• real personal spending 0.0% versus 0.2% expected. The prior month was revised lower to 0.3% from 0.4%

The PCE data shows that the upward trajectory is continuing with the number at the highest level since April 2012 and finally up to 2.0% level. It was higher than expected as well.

Personal income was solid as well MOM. The spending lagged.

There has been little reaction to the report although the USDJPY trades nearer its highs for the day.