US December PCE core 2.8% vs 2.8% expected

January 31, 2025 at 01:30PM
Core PCE (excluding food & energy):

Prior was +2.8%

Core m/m +0.2% vs +0.2% exp

Unrounded core PCE +0.156% vs +0.1149% m/m prior

PCE excluding food, energy and housing +0.2% m/m vs +0.1% m/m prior

Headline PCE:

Headline PCE +2.6% y/y vs +2.6% expected

Deflator +0.3% m/m vs +0.3% expected

Unrounded headline +0.2557% vs +0.128% m/m prior

Consumer spending and income for December:

Personal income +0.4% vs +0.4% expected. Prior month +0.3%

Personal spending +0.7% vs +0.5% expected. Prior month +0.4% (revised to +0.6%)

Real personal spending +0.4% vs +0.3% prior

Savings rate 3.8% vs 4.4% prior

The unrounded core PCE number almost made it to +0.1% but overall these numbers are in-line with estimates. The other standout is the strength in the consumer, which also isn’t a big surprise given the high consumption reading in yesterday’s PCE report.

Overall, the US dollar is little changed on the report.

This article was written by Adam Button at www.forexlive.com.