Yesterday’s personal incomes data showed yet another batch of inflation data with hardly a whiff of inflation (click to enlarge):
The Personal Consumption Expenditure (PCE) price index rose at an annualized rate of 1.0 percent in September, compared to an increase of 2.3 percent in August. Excluding food and energy prices (core PCE), the index was roughly flat (up 0.3 percent on an annualized basis). However, this followed a downward revision in August—from a 1.4 percent gain to 0.8 percent. increased 1.4 percent. That revision to July and August’s data knocked the 12-month growth rate in the core PCE down from 1.4 percent to 1.3 percent through August. After adding in September’s flat reading, the 12-month growth rate ticked down another 0.1 percentage point to 1.2 percent.