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By Harrison Clarke
WASHINGTON (MNI) - The core PCE price index posted a 0.2% gain in
April, as expected by both a Bloomberg survey and an MNI survey, data
released Friday by the Commerce Department showed.
The core PCE price index was up 1.6% year/year in April, a slightly
faster pace than the 1.5% year/year gain now reported in March. The
increase in April core prices keeps the rate below the 2% target set by
the Federal Reserve.
Here are some of the key factors from the data release on Friday:
- Personal income was up 0.5% in April, above the 0.3% gain
expected by both the Bloomberg consensus and the MNI survey. Personal
income was unrevised from the 0.1% gain in March. Wages and salaries
were up 0.3%. There were also income gains for personal income receipts
on assets and personal current transfer receipts.
- Current dollar PCE was up 0.3% in March, compared with
expectations for a 0.2% gain by an MNI survey and a 0.3% gain by the
Bloomberg consensus. The increase was the result of a 0.7% increase in
nondurable goods spending, despite a 0.8% decrease in durable goods.
This was accompanied by a 0.3% gain in services spending.
- Real PCE posted a flat reading in April after a 0.9% gain in
March. Real durables PCE was down 0.4% and real nondurables rose 0.3% in
the month. There was also a 0.1% decline in real services spending.
- The overall PCE price index was up 0.3% in April after a 0.2%
increase in March. The year/year rate was 1.5%, a rebound from the 1.4%
rate in March.
** MNI Washington Bureau: 202-371-2121 **