This afternoon’s publications out of the United States served to underline the slowdown in American consumer spending and personal income levels. One note of confidence rang out amid the bearish figures, however, in the form of mildly heightened consumer inflation.
The Bureau of Economic Analysis published its monthly Core Personal Consumption Expenditures (PCE) Price Index today. The results came in higher than expectations, with consumer inflation, excluding food and energy, rising 0.3% in June.
This number is rumored to be the primary gauge used by the Federal Reserve to measure inflation, despite being released 15 days after the Core CPI report, which tends to receive the most attention by traders and brokers alike. Even though spending and confidence are in decline, the inflation report gives cause for optimism as higher prices tend to translate into growth during sluggish economic periods.
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