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US: Annual core PCE price index remains steady at 2% in August
According to the data published by the U.S. Bureau of Economic Analysis, the PCE price index increased 0.1% on a monthly basis and the core PCE price index, which excludes volatile food and energy prices, rose less than 0.1% in the same period. On a yearly basis, the core PCE stayed unchanged at the Fed's target level of 2%.
Key quotes
- Personal income increased $60.3 billion (0.3 percent) in August according to estimates released today by the Bureau of Economic Analysis.
- Disposable personal income (DPI) increased $51.4 billion (0.3 percent) and personal consumption expenditures (PCE) increased $46.4 billion (0.3 percent).
- The increase in personal income in August primarily reflected increases in wages and salaries, government social benefits to persons, and nonfarm proprietors’ income.
- The $28.7 billion increase in real PCE in August reflected an increase of $15.3 billion in spending for goods and a $14.3 billion increase in spending for services.
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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