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Core PCE Nears 2% Target On 3-month Basis For First Since Dec’20

US DATA
  • Core PCE came in on the soft side in August with 0.145% M/M (cons 0.2) but with the rounded 0.1 on screens looking like a larger miss and with some detailed post CPI and PPI estimates having looked for a ‘low’ 0.2 anyway.
  • July was unchanged to 2.d.p at 0.22% M/M whilst June softened from 0.21 to 0.17% M/M.
  • Chair Powell at last week’s FOMC talked to 3- and 6-month measures: the three-month has slowed from 2.8% to 2.2% annualized for its lowest since 2% in Dec’20, and the six-month slowed from 3.4% to 3.0% for its lowest since Mar’21.

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