US Core PCE Index (Sep MM) 0.3% vs. Exp. 0.3% (Prev. 0.3%)
ORIGINAL · NewsquawkUS Core PCE Index (Sep MM) 0.3% vs. Exp. 0.3% (Prev. 0.3%)Read originalHide original
WSJ's Timiraos: The 12-month change was 3.1% (vs 3.0% in August and 2.8% one year earlier). The 6-month annualized rate was 2.9% (vs 2.8% in August and 2.9% one year earlier) The 3-month annualized rate was 2.9% (vs 2.2% in August and 2.6% one year earlier) Prices of core PCE services ex-housing rose 0.37% in September, pushing the 12-month change to 3.6% and matching the highest such reading since 2024. Core goods was also firm at 0.20%. While core goods prices were back in 2024 were falling on a year-over-year basis (as was the pre-pandemic trend), those prices are now at 2%. If core goods prices rise like this going forward, there will need to be more services disinflation for the Fed to achieve its 2% target.
September core PCE was 0.3% month over month. Timiraos reported firm core goods and services-ex-housing readings and said further services disinflation would be needed if goods prices continued rising.
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WSJ's Timiraos: The 12-month change was 3.1% (vs 3.0% in August and 2.8% one year earlier). The 6-month annualized rate was 2.9% (vs 2.8% in August and 2.9% one year earlier) The 3-month annualized rate was 2.9% (vs 2.2% in August and 2.6% one year earlier) Prices of core PCE services ex-housing rose 0.37% in September, pushing the 12-month change to 3.6% and matching the highest such reading since 2024. Core goods was also firm at 0.20%. While core goods prices were back in 2024 were falling on a year-over-year basis (as was the pre-pandemic trend), those prices are now at 2%. If core goods prices rise like this going forward, there will need to be more services disinflation for the Fed to achieve its 2% target.
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