Real Income, Real PCE Rise 0.2 Percent in July: PCE Inflation 0.1 Percent

31 Thursday Aug 2017

Posted by Mish | August 31, 2017 11:49:27 | Economics

The Personal Income and Outlays Report from the BEA shows “Real DPI increased 0.2 percent in July and Real PCE increased 0.2 percent.”

The PCE price index increased 0.1 percent. Excluding food and energy, the PCE price index increased 0.1 percent.

Personal Income and Outlays

This report is consistent with GDP near two percent which is where its been averaging for some time. Bond yields moved slightly lower.

The Fed will not appreciate the PCE price index trending lower nearly every month since March.

Mike “Mish” Shedlock

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2 thoughts on “Real Income, Real PCE Rise 0.2 Percent in July: PCE Inflation 0.1 Percent”

Ambrose Bierce said:

August 31, 2017 12:03:46 at 12:03 PM

you mean they secretly don’t really want inflation, they want inflation because they don’t want deflation, but just a little deflation wouldn’t that be good? i mean i have more money and things cost less? and if they raise rates won’t that reaffirm the spread in asset valuations? i mean cheap cars and cheap houses will really be cheap. and cheap stocks, buy the glorious dip. which is why SNB is buying up the FAANGs. and what good is the PCE ex food and energy? why not just call it the big screen TV index?

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Tony Bennett said:

August 31, 2017 12:19:40 at 12:19 PM

“The Fed will not appreciate the PCE price index trending lower nearly every month since March.”

…

The Emperor has no clothes.

Just going to take forever … and a day … for the masses to figure out.

Until the debt overhang issue resolved, there will be no sustained inflation*

*applies to countries whose currency considered “reserve”.

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