Highlights from the Fed's preferred inflation measure
- Prior was +3.6%
- PCE core MoM +0.4% vs +0.4% expected
- Prior MoM +0.2%
- Headline PCE +5.0% vs +4.6% expected (prior +4.3%)
- Deflator MoM +0.6% vs +0.3% prior
- Full report
Consumer spending and income for October:
- Personal income +0.5% vs +0.2% expected. Prior month -1.0%
- Personal spending +0.7% vs +1.0% expected. Prior month +0.6%
- Real personal spending +0.5% vs +0.3% prior
The details are more inflationary than the top-line number. A 0.6% jump in headline in the month is a troubling jump and 5.0% y/y inflation is the kind of thing that will get the hawks screaming.
Inflation highlights:
- Food +4.8% y/y
- Energy goods and services +30.2% y/y
Energy is hitting hard but it's not showing any signs of reversing, despite Biden's efforts.