Fed's Favorite Inflation Indicator Drifts Lower (Still Above 30 Year Highs)

27 January 2023

The headline from this morning’s income and spending data is The Fed’s favorite inflation indicator – Core PCE Deflator – printed pretty much in line with expectations (headline up 0.1% MoM was marginally hotter than expected). The year-over-year prints dropped to 5.0% and 4.4% respectively for headline and core – while both lower and trending down from the highs last year…

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