cont
Enviado: 29/9/2006 14:02The more closely watched core-PCE deflator, meanwhile, was up 0.2%, matching economists' expectations and putting the year-over-year rate at 2.5%, still within the Fed's forecasted range of 2.25-2.50%.
(briefing.com)
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ECONOMIC REPORT: Core inflation rising at fastest pace in 11 years; Incomes, spending grow at slowest pace this year
By Rex Nutting, MarketWatch
Last Update: 8:58 AM ET Sep 29, 2006
WASHINGTON (MarketWatch) -- U.S. core consumer price inflation hit an 11-year high in August as household incomes and spending rose at the slowest pace this year, the Commerce Department reported Friday.
Consumer prices rose 0.2% in August, and are up 3.2% in the past year, the government said. Core consumer prices, which exclude food and energy, also rose 0.2%.
The core personal consumption expenditure price index -- the key inflation gauge followed by the Federal Reserve -- has gained 2.5% in the past 12 months, the most since January 1995.
Core inflation was up 2.3% year-on-year in August, as core inflation increased 0.1% in August.
Personal incomes grew 0.3% as expected in August after rising 0.5% in July. Consumer spending increased 0.1% in August after rising 0.8% in July. Economists expected spending to increase 0.2%, according to a survey conducted by MarketWatch.
The report has mixed consequences for Fed policy, likely leaving the Federal Open Market Committee on course to hold its overnight interest rate target rate steady again in late October. See our complete Fed coverage.
Core inflation has reached an 11-year high and is now about a half percentage point above the level some Fed officials have said marks their comfort zone. On the other hand, the report reflects a weakening in both income growth and spending. The Fed has said that a slower economy would corral inflationary pressures in the economy.
Personal incomes grew 0.3% in nominal terms in August, as compensation of employees increased just 0.1%. It's the weakest income growth since November.
After-tax, inflation-adjusted real disposable incomes rose 0.2% in August.
Rental income increased 4.3% after rising 4.9% in July. Proprietors' income increased 0.5%.
Consumer spending increased 0.1% in August, the slowest growth in nominal terms since November. After adjusting for inflation, real consumer spending fell 0.1%, the first decline since September 2005.
Real spending on durable goods fell 1.3%. Real spending on nondurable goods fell 0.2%. Real spending on services increased 0.1%.
Despite the weak spending in August, "third-quarter consumption will still rise at a decent clip," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. The fourth quarter will start off well, he said, "but expect this to fade by year-end."
With incomes growing slightly faster than spending, the personal savings rate improved to negative 0.5% from negative 0.7%. The savings rate has been negative for 17 straight months.
(briefing.com)
---
ECONOMIC REPORT: Core inflation rising at fastest pace in 11 years; Incomes, spending grow at slowest pace this year
By Rex Nutting, MarketWatch
Last Update: 8:58 AM ET Sep 29, 2006
WASHINGTON (MarketWatch) -- U.S. core consumer price inflation hit an 11-year high in August as household incomes and spending rose at the slowest pace this year, the Commerce Department reported Friday.
Consumer prices rose 0.2% in August, and are up 3.2% in the past year, the government said. Core consumer prices, which exclude food and energy, also rose 0.2%.
The core personal consumption expenditure price index -- the key inflation gauge followed by the Federal Reserve -- has gained 2.5% in the past 12 months, the most since January 1995.
Core inflation was up 2.3% year-on-year in August, as core inflation increased 0.1% in August.
Personal incomes grew 0.3% as expected in August after rising 0.5% in July. Consumer spending increased 0.1% in August after rising 0.8% in July. Economists expected spending to increase 0.2%, according to a survey conducted by MarketWatch.
The report has mixed consequences for Fed policy, likely leaving the Federal Open Market Committee on course to hold its overnight interest rate target rate steady again in late October. See our complete Fed coverage.
Core inflation has reached an 11-year high and is now about a half percentage point above the level some Fed officials have said marks their comfort zone. On the other hand, the report reflects a weakening in both income growth and spending. The Fed has said that a slower economy would corral inflationary pressures in the economy.
Personal incomes grew 0.3% in nominal terms in August, as compensation of employees increased just 0.1%. It's the weakest income growth since November.
After-tax, inflation-adjusted real disposable incomes rose 0.2% in August.
Rental income increased 4.3% after rising 4.9% in July. Proprietors' income increased 0.5%.
Consumer spending increased 0.1% in August, the slowest growth in nominal terms since November. After adjusting for inflation, real consumer spending fell 0.1%, the first decline since September 2005.
Real spending on durable goods fell 1.3%. Real spending on nondurable goods fell 0.2%. Real spending on services increased 0.1%.
Despite the weak spending in August, "third-quarter consumption will still rise at a decent clip," said Ian Shepherdson, chief U.S. economist for High Frequency Economics. The fourth quarter will start off well, he said, "but expect this to fade by year-end."
With incomes growing slightly faster than spending, the personal savings rate improved to negative 0.5% from negative 0.7%. The savings rate has been negative for 17 straight months.