MNI DATA ANALYSIS: US Nov Core PCE Prices Now +1.9% Y/Y>

--Core PCE Prices +0.1% M/M; Overall Prices +0.1% M/M 

--Nominal PCE +0.4%, Real PCE +0.3%; Personal Income +0.2% 

By Harrison Clarke and Shikha Dave

     WASHINGTON (MNI) - Nominal PCE rose 0.4% in October as expected, 

while core PCE prices were up 0.1% for the month, raising the year/year 

rate to 1.9% after rounding, according to data released by the Bureau of 

Economic Analysis Friday morning. 

     The 1.9% year/year rate for core PCE prices follows no revision to 

the October gain of 1.8%, and a slight upward revision to a 2.0% gain in 

September. The rate sits just below the Fed's inflation target of 2%. 

--PCE GROWTH RISES AS EXPECTED

     The 0.4% gain in current dollar PCE was in line with the median 

expectation in an MNI survey and followed a 0.8% gain in October. 

Spending on durable goods was up 0.9% in the month, while nondurable 

goods spending rose 0.2% on a 2.1% decrease in energy prices. Services 

spending was up 0.4%.   

     Real PCE was up 0.3% in November, as the overall PCE price index 

was up 0.1%. The overall PCE price index was up 1.8% year/year, down 

0.2% from October, and down further from the levels seen in the summer. 

     After inflation adjustment, durable goods PCE was up 0.9%, while 

real nondurable goods PCE was up 0.6% and real services PCE was up 

0.2%. 

     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. 

--INCOME RISES, SAVINGS RATE DOWN

     Personal income rose by 0.2%, lower than the 0.3% gain expected, on 

an increase in wages and salaries as well as gains in proprietors' 

income, rental income, and supplements to wages and salaries. 

     The saving rate fell in November to 6.0% from 6.1% in October. 

     Personal taxes rose by 0.1% in the month after a 0.2% increase in 

October. However, disposable personal income rose by 0.2% after a 0.5% 

increase in October, while real disposable income was up 0.2%. 

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

[TOPICS: MAUDS$,MT$$$$,M$U$$$]