December Consumer Income/Spending And Inflation

2025-01-31 12:36:00 ET

Summary

• Consumers keep spending, while inflation edges higher.
• Personal consumption expenditures grew by a strong 0.7 percent in December, easily outstripping income growth of 0.4 percent and indicating that there were no signs of a slowdown in the biggest part of the US economy as the year ended.
• The overall PCE price index accelerated to a monthly gain of 0.3 percent (up from 0.1 percent) while the core rate (excluding the volatile food and energy components) rose by 0.2 percent (also higher than November’s 0.1 percent).

Consumers keep spending, while inflation edges higher.Personal consumption expenditures (PCE) grew by a strong 0.7 percent in December, easily outstripping income growth of 0.4 percent and indicating that there were no signs of a slowdown in the biggest part of the US economy as the year ended. November data were revised a bit higher, reinforcing the notion of a solidly growing economy....

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