Upside to spending but savings rate falls to lowest in a year/Inflation stats about as expected

The December PCE both headline and core rose .2% m/o/m as expected with headline up 2.6% y/o/y and 2.9% for the core. Again, the reason why PCE trends below CPI is because it has a much smaller weighting in housing and a much bigger weight in healthcare where medicaid and medicare reimbursement rates are a big part of that calculation. 

The only surprise in the data this morning was the upside in personal spending as it was up .7% m/o/m, two tenths more than expected and November was revised up by 2 tenths.