Core PCE (excluding food & energy):

• Prior was +2.8% (revised to +3.0%)
• Core m/m +0.0% vs +0.1% exp
• Unrounded core PCE +0.028% vs +0.38% m/m prior
• Supercore (services ex-shelter) +3.0% vs +3.34% y/y prior
• Services inflation +0.15% vs +0.375% m/m prior

Headline PCE

• Headline PCE +2.3% y/y vs +2.2% expected
• Deflator +0.0% m/m vs +0.0% expected
• Unrounded headline -0.04% vs +0.34% m/m prior

Consumer spending and income for March :

• Personal income +0.5% vs +0.4% expected. Prior month +0.8 (revised to +0.7%)
• Personal spending +0.7% vs +0.5% expected. Prior month +0.4% (revised to +0.5%)
• Real personal spending +0.7% vs +0.1% prior
• Savings rate 3.9% vs 4.6% prior

This is a bit of a headscratcher because the inflation numbers in the GDP report — which uses the same data set — was hot. Ultimately, it will get sorted out with the revisions but on the face of it, this edges the Fed towards a rate cut.

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