US November PCE core inflation 3.2% vs 3.3% expected

<ul><li>Prior was +3.5%</li><li>PCE core m/m +0.1% vs +0.2% expected (unrounded at 0.09%)</li><li>Prior m/m core +0.2%</li><li>Headline PCE 2.6% vs +2.8% expected (prior +3.0%)</li><li>Deflator m/m -0.1% vs +0.0% expected (prior +0.0%) — first negative monthly reading since April 2020</li></ul><p>Consumer spending and income for November:</p><ul><li>Personal income +0.4% vs +0.4% expected. Prior month +0.2% (revised to +0.3%)</li><li>Personal spending +0.2% vs +0.3% expected. Prior month +0.2%</li><li>Real personal spending 0.3% vs +0.2% prior</li></ul><p>These numbers are USD-negative but the market is instead focused on a strong durable goods orders report. Digging deeply into services ex housing and food and it rose 0.1%, the same as the prior month. Over the last six months, the core PCE price index rose 1.9% at an annualized rate. </p><p>The market continues to price in 154 bps in cuts but US 2-year yields have risen to 4.35% from 4.32% on the data.</p>

This article was written by Adam Button at www.forexlive.com.