US PCE inflation ebbs in January, consumption steady
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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