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US: Annual core-PCE price index advances to 2% in May vs. 1.9% expected
"Disposable personal income (DPI) increased $63.2 billion (0.4 percent), and personal consumption expenditures (PCE) increased $27.8 billion (0.2 percent)," the Bureau of Economic Analysis reported in its Personal Income and Outlays report for May 2018. With this monthly increase, the annual core-PCE price index rose to 2% to meet the Federal Reserve's inflation target.
Key takeaways from the official publication
- Personal income increased $60.0 billion (0.4 percent) in May.
- The increase in personal income in May primarily reflected increases in wages and salaries, personal dividend income, and nonfarm proprietors’ income.
- the $1.4 billion decrease in real PCE in May reflected a decrease in spending for services that was partially offset by an increase in spending for goods.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
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