December inflation highlights in the PCE report:
– Prior was 1.3% y/y (revised to +1.4%)
– Core PCE 0.0% vs 0.1% m/m expected
– Prior core PCE +0.1% m/m (revised to +0.2%)
The inflation numbers are a touch lower but it’s largely balanced out by upward revisions. It takes some serious mental gymnastics for the Fed to see inflation in all of this but they’ve managed to do it (and will continue to do so).
