US: Annual core PCE price index drops to 1.8% in October vs 1.9% expected

Eren Sengezer FXStreet

The data published by the U.S. Bureau of Economic Analysis on Thursday revealed that the core Personal Consumption Expenditures (PCE) price index, the Fed's preferred gauge of inflation, rose 0.1% and 1.8% in October on a monthly and yearly basis, respectively, and both readings fell short of analysts' estimates.

Key takeaways from the press release

The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
Personal income increased $84.9 billion (0.5 percent) in October.
Disposable personal income (DPI) increased $81.7 billion (0.5 percent) and personal consumption expenditures (PCE) increased $86.9 billion (0.6 percent).
Personal saving was $967.8 billion in October and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.2 percent.

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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