Jan core PCE price index +0.3% (unrounded...>

US DATA: Jan core PCE price index +0.3% (unrounded +0.271%), as 

expected after +0.2% in Dec (+0.167%), but y/y rate stayed at +1.5% for 

the fourth straight month. 

- Total PCE price index +0.4% (unrounded +0.368%), but y/y rate held 

steady at 1.7%. Overall, PCE inflation remains under control.

- Pers income +0.4% vs +0.3% expected, while nominal PCE as-expected 

+0.2% and real PCE -0.1%, so there will likely be little market reaction. 

January real PCE was up only 0.7% SAAR vs the 4Q avg, this follows the 

3.8% rise seen in the 4Q GDP report Wednesday.

- Jan savings rate rebounded to 3.2% from 2.5% in Dec. The low saving 

rate should continue to support PCE, as consumers feel confident about 

the economy and the job market.

- Income was lifted by +0.5% wages and salaries and a solid increase in 

transfer receipts. Minimum wage gains in some states and cost-of-living 

increases for Social Security added to the income figure. There was a 

notable drop in receipts on assets that provided some offset.