Keeping you up to date on the latest data releases.
- PCE Price Index
The Personal Consumption Expenditures (PCE) price index increased at an annualized rate of 5.3 percent during August, following increases of 1.0 percent in June and 0.4 percent in July, and is up 1.5 percent over the last twelve months. This is the largest one-month increase in the PCE price index since May of 2009, and it pulls the 3-month trend in annualized monthly changes up from −0.3 percent to 2.3 percent. The primary cause of the spike in August was an increase in the price of energy goods and services, a highly volatile series, which jumped 96.1 percent (annualized) during the month. The “core” PCE price index—which excludes food and energy—increased just 1.3 percent in August, following an increase of 0.7 percent in July, and is up 1.6 percent since August of 2011. The short-term (3-month) trend in year-over-year changes for “core” PCE prices has come down a bit since the beginning of the year, as it is currently at 1.7 percent compared with average growth rates of 1.9 and 1.8 percent for the first and second quarter, respectively. The market-based “core” PCE index—which excludes most imputed prices—increased 1.9 percent for the month, after increasing 1.0 percent in July, and is up 1.8 percent over the last twelve months.