Income & Spending (Nov)

The 0.11% m/m increase in core PCE prices in November was the smallest gain in six months, although it follows on the heels of two above-target ~0.25% gains in the preceding two months. That November undershoot of the target was enough to bring the 3-month annualised core inflation rate down to 2.5%, from 2.8%, but the 6-month rate rebounded to 2.4%, from 2.3%, while the annual inflation rate was unchanged at 2.8%. Headline PCE prices increased by 0.13% m/m, with the annual inflation rate rebounding slightly to 2.4%, from 2.3%.