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.