US February PCE core +2.8% y/y vs +2.7% expected

Core PCE (excluding food & energy):

• Prior was +2.6% (revised to +2.7%)
• Core m/m +0.4% vs +0.3% exp
• Unrounded core PCE +0.38% vs +0.285% m/m prior
• PCE excluding food, energy and housing % m/m vs +0.3% m/m prior
• Supercore (services ex-shelter) % m/m and % y/y
• Services inflation +0.375% m/m

Headline PCE

• Headline PCE +2.5% y/y vs +2.5% expected
• Deflator +0.3% m/m vs +0.3% expected
• Unrounded headline +0.34% vs +0.325% m/m prior

Consumer spending and income for February:

• Personal income +0.8% vs +0.4% expected. Prior month +0.9% (revised to +0.7%)
• Personal spending +0.4% vs +0.5% expected. Prior month -0.2% (revised to -0.3%)
• Real personal spending +0.1% vs -0.5% prior (revised to -0.6%)
• Savings rate 4.6% vs 4.6% prior

Treasury yields are lower on this despite slightly higher yields. The dollar was little change initially but is now slipping. I suspect the market is a bit more focused on the spending numbers than the inflation data, given tariff worries.

This article was written by Adam Button at www.forexlive.com.