Inflation stats about in line/Income, spending and savings rate data

While they have different weights (PCE heavy on healthcare and gov’t reimbursement rates, CPI on housing), the PCE typically doesn’t deviate much from expectations since it comes weeks after the CPI/PPIand today was no different. The slight difference was the December headline and core PCE was revised down by one tenth so the in line January figure was technically a hair below expectations. Either way, the y/o/y figures of 2.4% headline and 2.8% core were spot on with the estimate. Energy prices were a headline drag, down 4.9% y/o/y, partly offset by a 1.4% rise in food prices.

Goods prices fell .5% y/o/y driven by a 2.4% fall in the prices for durable goods. Nondurable pricing rose .5% y/o/y. Service prices remained persistent, up by 3.9% y/o/y, the same pace seen in December and vs 4.2% in November.