USA: While Americans’ income and spending is normally the headline-making data, this morning’s release will focus all eyes on The Fed’s favorite inflation indicator – the PCE Deflator.
The headline PCE Deflator rose 3.6% YoY, the fastest rate or price increases since 2008.
Even more notably, the Core PCE Deflator soared 3.1% YoY (hotter than the +2.9% YoY expected) and the hottest print since May 1992…
Source: Bloomberg
With the highest MoM rise in the core deflator since 9/11…
Source: Bloomberg
However, back in income and spending land, the picture was very mixed with incomes crashing 13.1% MoM and spending rising just 0.5% MoM after the stimmies run dry …
Source: Bloomberg
That is the biggest MoM crash in incomes ever which sent the savings rate plunging…
Source: Bloomberg
The consumer buffer is almost gone: personal savings rate plunges by 50% as Americans do what they do best: spend their savings.
So – let’s summarize – prices are rising at their fastest pace in almost 30 years and incomes just plunged by their most ever!
We’re gonna need more stimmies!
by Tyler Durden
Join: š https://t.me/acnewspatriots
The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of AC.NEWS
Disclaimer: This article may contain statements that reflect the opinion of the author. The contents of this article are of sole responsibility of the author(s). AC.News will not be responsible for any inaccurate or incorrect statement in this article www.ac.news websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of āfair useā in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than āfair useā you must request permission from the copyright owner. Reprinting this article: Non-commercial use OK. If you wish to use copyrighted material for purposes other than āfair useā you must request permission from the copyright owner.
Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.
