Core PCE y/y
- Prior was +4.2% (revised to +4.3%)
- Core PCE +0.1% m/m vs +0.2% expected
- Prior m/m +0.2%
- Headline inflation PCE +3.5% y/y vs +3.5% expected (Prior +3.4%)
Deflator +0.4% m/m vs +0.5% expected (prior was +0.2%)
The inflation numbers are on the low side of expectations and that should take the pressure of bonds, while weighing on the US dollar. Moreover, it's the first reading below 4% on PCE inflation in two years.
Consumer spending and income for August:
- Personal income +0.4% vs +0.4% expected. Prior month +0.2%
- Personal spending +0.4% vs +0.4% expected. Prior month +0.8% (revised to +0.9%)
- Real personal spending +0.1% vs 0.2% prior
The spending numbers are in line with estimates.
Overall, there is some modest USD selling.