The core inflation indicator of the United States exploded again in May. According to statistics from the U.S. Department of Commerce, the U.S. PCE price index rose 3.9% year-on-year in May, and expected to rise 3.9%, a slight increase from the previous value of 3.6%. is far higher than the official Fed inflation target 2% .
In addition, the US core PCE price index increased by 3.4% year-on-year in May, hit the highest since 1991, with the previous expected 3.4% year-on-year increase, while the previous value in April was 3.1% year-on-year increase.
In other data, U.S. residents' income fell 2% month-on-month, slightly better than the expected decline of 2.5%, far better than the decline of 13.1% in April; while consumer spending remained unchanged month-on-month, lower than expected growth of 0.4% and 0.9% in April.
Of course, due to the low base effect, U.S. residents' income growth has moderately accelerated year-on-year, while spending growth has slowed significantly (but higher values).
Citi said that the adjustment in spending mainly reflects the rise in prices of parts such as air tickets, car rentals and used cars. Although these unusually strong price increases will eventually prove temporary, they may continue for a month or two.
It is worth noting that with the gradual withdrawal of stimulus measures, the disposable income of in has decreased significantly.
In terms of segmented income, government wages rose 3.5% year-on-year, up from 1.3% in April, while private workers wages rose 15.7% year-on-year, down from a record 19.3% in April.
It is worth mentioning that changes in expenditure and income have lowered the savings rate. After the data of
was released, the dollar index fell more than 10 points in the short term to 91.65; the spot gold rose 5 dollars in the short term to US$1,788.90 per ounce; the US stock futures rose in the short term, and the Dow futures gained once expanded to 0.4%.
Consumption expenditure is on track
Analysts pointed out that the report shows that spending growth caused by the epidemic relief stimulus measures earlier this year has slowed down, and consumption has entered a more sustainable pace and pace. As mass vaccination and economic reopening give consumers confidence to travel and resume many pre-pandemic activities, coupled with higher savings levels coupled with fewer epidemic prevention restrictions, service spending should reach pre-pandemic levels in the coming months.
As retail sales hover at all times highs, consumer spending has begun to shift to the service industry—the biggest component of the U.S. economy, while durable goods spending hit its biggest drop since February.
analysts also pointed out that at the same time, increasing demand, supply bottlenecks and capacity restrictions are pushing up prices, and the rise in inflation has weakened people's purchasing power.
This article is from Wall Street News
