US August core PCE +3.9% y/y vs +3.9% expected

<ul><li><a href="https://www.forexlive.com/news/us-july-core-pce-inflation-42-yy-vs-42-expected-20230831/" target="_blank" rel="follow">Prior </a>was +4.2% (revised to +4.3%)</li><li>Core PCE +0.1% m/m vs +0.2% expected</li><li>Prior m/m +0.2%</li><li>Headline inflation PCE +3.5% y/y vs +3.5% expected (Prior +3.4%)Deflator +0.4% m/m vs +0.5% expected (prior was +0.2%)</li></ul><p>The inflation numbers are on the low side of expectations and that should take the pressure of bonds, while weighing on the US dollar. Moreover, it's the first reading below 4% on PCE inflation in two years.</p><p>Consumer spending and income for August:</p><ul><li>Personal income +0.4% vs +0.4% expected. Prior month +0.2%</li><li>Personal spending +0.4% vs +0.4% expected. Prior month +0.8% (revised to +0.9%)</li><li>Real personal spending +0.1% vs 0.2% prior </li></ul><p>The spending numbers are in line with estimates.</p><p>Overall, there is some modest USD selling.</p>

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