The inflation stats along with spending, income and savings rate

As is usually the case, the August PCE inflation stats were about as expected with rounding determining whether it was above or below expectations. Because it comes after CPI and PPI, the estimates are usually pretty tight with what is ultimately released. And I’ll say for the umpteenth time, the Fed is relying on what Medicare and
Medicaid reimbursement rates are doing since that is the biggest component of PCE.

Both headline and core rose one tenth and the y/o/y gains were 2.2% and 2.7% respectively vs 2.5% and 2.6% in the month before. Food prices were up one tenth m/o/m but offset by the .8% fall in energy prices. Service prices continues to lead inflation higher, as it always does while goods prices fell again.