US core PCE for June YoY 2.8% vs +2.7% expected

Core:

• Prior was 2.7%
• YoY PCE 2.8% vs 2.7% est.
• MoM 0.3% versus 0.3% estimate
• PCE prices excluding food and energy and housing +0.3% versus 0.2% last month
• PCE services price excluding energy and shelter +0.2% versus +0.2% last month
• The unrounded was 0.2563% which rounded up to 0.3%. So it was just above the midpoint for rounding. .

Headline PCE:

• YoY 2.6% versus 2.5% expected
• MoM 0.3% versus 0.3% estimate
• Unrounded PCE 0.2805% rounded up to 0.3%

Looking at other data from the report :

• Personal income, it rose by 0.3% versus 0.2% and -0.4% last month
• Personal consumption rose 0.1% versus -0.2% last month (revised from -0.3%)

Other details from the BEA:

In June, U.S. personal income rose by $71.4 billion (0.3%), while disposable personal income increased by $61.0 billion (0.3%), according to the BEA.

Personal consumption expenditures (PCE) also climbed $69.9 billion (0.3%). Total personal outlays grew by $69.5 billion, and the personal saving rate held at 4.5%, with $1.01 trillion in total personal savings for the month.

Overall, althought the core PCE was as expected at 0.3%, it was just above the "rounded up" level at 0.2563%. So overall, prices are near expectations with inflation still above the 2.0% but not running as fast as thought.

Personal consumption at 0.1% after -0.2% last month is not that great.

As the dust settles, the major stock indices are maintaining their gains:

• Dow industrial average up 118 points
• S&P index up 62 points
• NASDAQ index is up hundred and 20 points