- Previous was +2.6%
- Core Personal Spending +0.2% MoM vs. +0.2% Expected (Unrounded +0.161%)
- Previous M/M +0.2%
- Core PCE inflation rose to +2.5% YoY vs. +2.6% expected (+2.5%)
- Deflator +0.2% MoM vs. +0.2% Expected (previous was +0.1%)
- Unrounded m/m +0.155%
Consumer Spending and Income for July:
- Personal income +0.3% vs. +0.2% expected. Previous month +0.2%
- Personal spending rose 0.5% vs. 0.5% expected. The previous month rose 0.3%
- Real personal spending rose +0.4% vs. +0.2% previously
These numbers are a bit cautious, and the US dollar fell on two fronts, but the moves were small. Overall, this report shows continued progress in inflation, which is a green light for the Fed to cut interest rates. The probability of a 50 basis point rate cut is 30%, slightly lower than yesterday, but it will depend on Friday’s nonfarm payrolls report.
This article was written by Adam Bouton on www.forexlive.com.