US August PCE core +2.9% y/y vs +2.9% expected

Core:

• Prior was +2.9%

• Core m/m +0.2% vs +0.2% exp
• Unrounded core PCE +0.227%
• Supercore (services ex-shelter) +3.4%
• Services inflation+3.6% y/y and +0.325% m/m

Headline PCE:

• Headline PCE 2.7% vs 2.7 exp
• Deflator +0.3% m/m vs +0.3% exp
• Unrounded m/m +0.265%

Consumer spending and income for August :

• Personal income +0.4% vs +0.3% expected. Prior month +0.4%
• Personal spending +0.6% vs +0.5% expected. Prior month +0.5%
• Real personal spending +0.4% vs +0.4% prior
• Savings rate 4.6% vs 4.8% prior

The year-over-year core PCE number really highlights the Fed's problem. This isn't the pre-covid period anymore.