Quick data rundown

In May, the headline PCE rose .4% m/o/m and 4.1% y/o/y while the core rate was higher by .3% m/o/m and 3.4% y/o/y. Both about as expected due to rounding and up from 3.8% and 3.3% y/o/y gains seen in April. Of course oil prices have fallen sharply in June, making this data somewhat old news at the headline level. As CPI and PPI have already been seen, the PCE data rarely deviates from expectations.

Energy prices were up 4% in the month and by 24% y/o/y. Food prices grew by .6% m/o/m and 2.4% y/o/y. Goods prices for durable goods were up by 3.3% y/o/y. With services, prices were up by 3.8% y/o/y.

This matches up with an income rise of .7% m/o/m after no change in April while spending was higher by .7% m/o/m as expected when including the revision in the prior month. The savings rate at 3% combines this, unchanged with April but at the lowest level since June 2022.