Wages Lap Inflation to Start 2024

While inflation did slow as expected, it was the giant jump in wages that has everyone talking, according to the latest data from the Bureau of Economic Analysis.

• M-O-M: The Personal Consumption Expenditure Price index showed prices rising 0.3% in January, up from 0.1% in December and the biggest jump since September.

• Y-O-Y: Prices actually slowed year-over-year to 2.4% in January, down from 2.6% in December and the lowest level since February 2021.

The Core. Core PCE rose 0.4% in January, up from the 0.1% rise in December and the biggest increase since last February.

Income & Spending. Personal income skyrocketed 1.0% in January, up from 0.3% in December and the biggest monthly increase since last January.

• Spending fell as expected with a 0.2% increase in January, down from the 0.7% rise in December and the smallest increase since October.

• Personal savings rose 13.3% to $779 billion in January, up 1.7% from January, up from the 7.9% drop in December and the biggest increase since October.