- Prior was +4.7%
- PCE core MoM +0.3% vs +0.4% expected
- Prior MoM +0.6%
- Headline inflation PCE +5.0% vs +5.4% prior
- Deflator MoM +0.3% vs +0.6% prior
Consumer spending and income for November:
- Personal income +0.3% vs +0.2% expected. Prior month +0.6%
- Personal spending +0.2% vs +0.3% expected. Prior month +1.8%
- Real personal spending -0.1% vs +1.1% prior
These numbers should give the Fed a bit more confidence that hiking just 25 bps at the last meeting was the right call and that there's no need (for now) to hike above 5.25%. There will be one more PCE report before the May 3 FOMC and the market is currently pricing in a 55% chance of a 25 bps hike.