The Core PCE Price Index remains at 1.3% as expected. It remains within a significant distance of the 2% target. Inflation remains weak while employment looks good. This has been the same story for quite some time.
Will it matter? Janet Yellen and her colleagues are set to raise rates in December, no matter what. It will probably be Yellen’s last post-rate press conference.
Other figures that were released were quite alright. Personal spending is up 1% against 0.8% expected. Personal income is up 0.4% exactly as predicted. Month over month, core PCE is up 0.1%, as projected as well.
The effect of the hurricanes on the data remains unclear at the moment. The numbers are for September, the month most affected by the hurricanes.
The focus at the moment is not on the data but rather in politics. Trump may certainly be distracted from nominating the next Fed Chair by the surrendering of Manafort.