Highlights
In focus this morning, US core personal consumption price index figures matching expectations with an increase of 0.2 percent on the month in July and 3.3 percent from a year ago. That is not the sort of inflation figure the hawks on the FOMC will be OK with if it continues. Plus the total PCE price index is up 0.2 percent on the month and 3.7 percent year-over-year, slightly more than anticipated.
The monthly PCE price index growth rates are higher from June for both the overall and core measures, while the 12-month rates show no sign of slowing. Boston Federal Reserve Bank President Susan Collins said explicitly last week that the FOMC needs to see slower inflation to head off a rate hike.
Meanwhile, personal income is up 0.4 percent in July from June, twice as fast as expected by forecasters. Personal consumption expenditure is up 0.2 percent, slightly more than the 0.1 percent expected.