Posted 1/26/2024, 2:26:00 PM
Inflation Moderates While Consumers Dip Into Savings
- Core PCE inflation slowed to 2.9% year-over-year in December, indicating easing price pressures
- Personal incomes rose 0.3% in December, while real disposable incomes only increased 0.1% after factoring in inflation
- Goods prices fell 0.2% in December, marking the third straight monthly decline, while services prices rose 0.3%
- The personal savings rate slipped to 3.7% in December from 4.1% in November, suggesting consumers are dipping into savings
- Headline PCE inflation held steady at 2.6% year-over-year in December; monthly rate ticked up to 0.2% after a decline in November