Fed’s Favorite Inflation Indicator Ticks Up In July As Americans Suddenly Start Saving More
Following the CPI and PPI internals, this morning’s PCE data should not offer too many surprises with expectations for the headline price Index to rise just 0.1% MoM in July (after deflating for the first time since COVID in June).
The (old) Fed’s favorite inflation indicator – Core PCE (a measure of price changes in consumer goods and services that excludes volatile food and energy costs) – printed in line with expectations (+0.2% MoM and +3.3% YoY), a very slight uptick…
Services costs continue to dominate the inflationary picture…
The headline PCE rose 0.2% MoM (hotter than the +0.1% MoM expected) with a small uptick for the YoY at +3.7%…
Non-durable goods prices continued to deflate in July…
The much-watched SuperCore PCE (Services ex-shelter) saw price inflation slow on a YoY basis…
The decline in crude prices dragged the Energy component of PCE lower…
Ironically, while semiconductor prices are major contributors to inflation, it turns out that a rising (or now sideways/falling) stock market is also driving up aggregate prices as portfolio management service costs soar…
This is important because it accounted for more than half of all Core PCE Services inflation…
Under the hood, it was all Portfolio Management & Advice Services…
Higher prices were met with higher spending (+0.2% MoM notional) and higher income growth (+0.4% MoM) – both stronger than expected…
Income and spending annual growth is slowing…
On the income side, both public and private worker wage growth slowed:
-
Govt worker wages drop to just 1.4% YoY, lowest since March 2021
-
Private worker wages drop to 3.8% from 4.6%, lowest since March 2026
Real personal spending growth dipped notably…
…which might help explain why the savings rate inflected higher from four year lows…
“The economy remains strong and inflation isn’t dropping,” says TradeStation’s David Russell, Global Head of Market Strategy.
”Strong consumption, spending and durable goods orders suggest the committee has room to tighten without causing a recession. These numbers support hawkish policymakers at the Fed’s committee and increase pressure on Kevin Warsh later this week. It’s getting harder for him to dodge the issue of hiking rates.”
Tyler Durden Wed, 08/26/2026 – 08:43
Source: https://freedombunker.com/2026/08/26/feds-favorite-inflation-indicator-ticks-up-in-july-as-americans-suddenly-start-saving-more/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
| Visits: | 1,830,185,959 |
| Stories: | 8,694,013 |
Whistler Blowers, Insiders
