US PCE inflation ebbs in January, consumption steady

29th Feb 2024 13:40

(Sharecast News) - Americans' personal incomes surged at the start of 2024, although that did not carry over into their spending.

According to the Department of Commerce, personal incomes and spending increased by 1.0% and 0.2% month-on-month, respectively.

Economists had penciled-in increases of 0.4% and 0.2%.

Disposable personal incomes on the other hand grew by a more restrained 0.3% in comparison to December.

On the prices front, the price deflator for personal consumption expenditures rose by 0.3% (consensus: 0.3%).

At the core level, the PCE price index was higher by 0.4% (consensus: 0.4%).

Nevertheless, in annual terms headline PCE price gains ebbed from 2.6% to 2.4% and core PCE prices from 2.9% to 2.8%.

The personal savings rate ticked higher by one tenth of a percentage point to 3.8%.

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