Home » US: consumer spending -0.1%, personal income + 1.1%, core PCE inflation + 3.6% in July. Given inflation pending Powell

US: consumer spending -0.1%, personal income + 1.1%, core PCE inflation + 3.6% in July. Given inflation pending Powell

by admin

Fed president Jerome Powell himself, even more so today, awaiting the speech he will deliver at 4 pm Italian time at the virtual meeting in Jackson Hole, will be looking carefully at the data just released: it is the PCE index, a crucial thermometer of the inflation monitored by the US central bank for its monetary policy decisions. The core component of the figure rose by 3.6% on an annual basis in July, in line with consensus expectations, and unchanged compared to + 3.6% in June (revised upwards from the + 3.5% initially reported) . On a monthly basis, the core PCE was up by 0.3%, as expected and compared to + 0.4% previously.

Overall, the index rose 4.2% year on year, accelerating from the previous + 4%.

The data was released as part of the report relating to consumption expenses and personal income. In particular, personal expenses fell by 0.1%, compared to the + 0.3% expected and the previous rise of 1%. Personal income rose by 1.1%, compared to an estimated + 0.2% and + 0.1% in June.

The rise in US inflation is one of the reasons that fueled the fear known as the ‘taper tantrum’ in the markets, that is, the fear that the Fed will begin to reduce its quantitative easing plan by $ 120 billion a month. And important information about the future of QE could come today in the words of Jerome Powell.

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