Prior was +2.6%PCE core +0.2% m/m vs +0.2% expected (unrounded +0.161%)Prior m/m +0.2%Headline inflation PCE +2.5% y/y vs +2.6% expected (Prior +2.5%)Deflator +0.2% m/m vs +0.2% expected (prior was +0.1%)Unrounded m/m +0.155%
Consumer spending and income for July:
Personal income +0.3% vs +0.2% expected. Prior month +0.2% Personal spending +0.5% vs +0.5% expected. Prior month +0.3%Real personal spending +0.4% vs +0.2% prior
These numbers are a tad dovish and the US dollar edged down on a couple fronts but the moves were minimal. Overall, this report shows continued progress on inflation and is a green light for the Fed cut cut rates. The probability of 50 bps is at 30%, which is a tad lower than yesterday but will hinge on next Friday’s non-farm payrolls report.
This article was written by Adam Button at www.forexlive.com.
