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**MNI 5 THINGS: US Sept Core PCE Price Index +0.2%; Y/Y +2.0%>

--5 Things We Learned From September Personal Income Data         
By Kevin Kastner, Harrison Clarke, and Shikha Dave
     WASHINGTON (MNI) - The following are the key points from the 
September personal income, spending, and price data released Monday by 
the Bureau of Economic Analysis: 
     - The data suggest inflation is well contained, with the year/year 
rate for the core measure continuing its string of 2.0% gains and the 
overall PCE price index falling to +2.0% y/y from +2.2% in August. 
Personal income growth was below expectations, while nominal PCE and 
month/month core prices were as-expected, so markets are likely to shrug 
off the data. 
     - The core PCE price index rose 0.2% m/m (+0.153% unrounded, so 
almost +0.1%), as expected, following a flat (+0.035%) reading in 
August. The y/y rate stayed at 2.0% (+1.966% unrounded vs +1.960% in 
August). The overall PCE price index was up 0.1% m/m for the fourth 
straight month, compared with a 0.3% gain a year ago, allowing the y/y 
rate to slow to 2.0% from 2.2% in August. 
     - Current dollar PCE was up 0.4%, right on expectations, with a 
1.4% surge durable goods spending, likely on vehicles, driving much of 
the increase. Nondurable goods spending and services spending were both 
up 0.3% in the month. Real PCE was 0.3% after a 0.4% gain in August. 
     - Personal income was up only 0.2%, below the 0.4% gain expected, 
with wages and salaries up only 0.2%. Additionally, proprietors' income 
posted the first outright decline since April. Offsetting that weakness 
were strong gains for rental income, receipts on assets, and current 
transfer receipts. 
     - Personal taxes were up 0.3% after a 0.6% gain in August. 
Disposable personal income was up 0.2% while real disposable income was 
up 0.1%. The savings rate fell to 6.2% from 6.4% in August. 
     ** MNI Washington Bureau: 202-371-2121 ** 

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