Sonia Meskin, US Economist at Standard Chartered, points out that US May personal consumption expenditure (PCE) data printed stronger than their and market expectations as core PCE rose 1.96% y/y, rising by a rounded 2% for the first time in six years, and 0.21% m/m.
Key Quotes
“Core goods prices and health care helped inflation momentum. Core goods prices remains an area to watch as pressures from producer prices, which have persisted for some months, may finally be seeping into core consumer inflation – a trend we anticipated earlier this year.”
“Personal income rose 0.4% m/m; wages and salaries increased 0.3% m/m, building on an increase in April.”
“Overall, the report paints a solid picture of the US consumer and of inflation finally reaching the Federal Reserve’s 2% objective, perhaps faster than the central bank had hoped.”
Share
