**MNI 5 THINGS: US Nov Core PCE Price Index +0.1%; Y/Y +1.9%>

--5 Things We Learned From November Personal Income Data         

By Harrison Clarke and Shikha Dave

     WASHINGTON (MNI) - The following are the key points from the 

November personal income, spending, and price data released Friday by 

the Bureau of Economic Analysis: 

     - The data suggest inflation is still well contained, with the 

year/year growth rate for the core measure rising to 1.9% after an 

upward revision to the September reading to +2.0% from +1.9% that was 

mostly due to rounding, and no revision to the +1.8% October reading. 

The overall PCE price index was +1.8% y/y, compared to +2.0% in October. 

Personal income was slightly lower than expected, and spending was in 

line with expectations, but the softer inflation picture is likely be 

more closely viewed by markets. 

     - The core PCE price index rose 0.1% m/m (+0.148% unrounded), below 

expectations, following a +0.1% (+0.120%) reading in October. The y/y 

rate rose to +1.9% vs +1.8% in Oct, as the month/month gain was 0.1% a 

year ago. The overall PCE price index was up 0.1% and the y/y rate fell 

to +1.8%, below the levels seen in the summer. 

     - Current dollar PCE was up 0.4%, in line with expectations for a 

that were rooted in a strong retail sales report. A 0.9% gain in durable 

goods spending followed a 0.8% gain in October. Nondurable goods 

spending was up 0.2% on a 2.1% drop in energy prices and services 

spending was up 0.4%. 

     - Real PCE was up 0.3% after a 0.6% gain in October. Through two 

months, real PCE is running +3.4% SAAR from the Q3 average, a slowdown 

from the 3.5% rate reported Q3 GDP report earlier this morning. 

     - Personal income was up 0.2%, below the 0.3% gain expected, with 

wages and salaries up 0.2% and income gains for proprietors' 

income, current transfer recepits, and rental income. Personal taxes 

were up 0.1% after a 0.2% gain in October. Disposable personal income 

was up 0.2% while real disposable income was up 0.2%. The savings rate 

fell to 6.0% from 6.1% in October. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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