The August Personal Income And Outlays Report has been released by the Bureau of Economic Analysis, and it is not good news for Jay Powell.
From the preceding month, the PCE price index for August increased 0.3 percent (table 9). Prices for goods decreased 0.3 percent and prices for services increased 0.6 percent. Food prices increased 0.8 percent and energy prices decreased 5.5 percent. Excluding food and energy, the PCE price index increased 0.6 percent.
0.3% month-on-month rise in overall inflation, 0.6% month-on-month rise in “core” inflation, 0.8% month-on-month rise in food price inflation do not add up to Jay Powell making progress in his misaligned fight against consumer price inflation.
But then, how can he fight what he cannot understand?