Inflation Threat?
I just had some time to go over the PCE numbers from today’s BEA report. (info) I investigated the numbers further because I did not like the headlines that suggested inflation worries due to the core PCE deflator.
So, when you look at the actual numbers and the breakdown of the growth, the increased growth is clearly coming from a few key areas.
1. Motors
2. Fuel Oil and Coal
3. Electricity and Gas
4. Medical Care
5. ‘Other’ w/in Services (do not really know what it means, but it is too high for my taste)
I am not going to pretend to know how to read this stuff, nor am I aware of economist expectations for these numbers. But what I do see is a lower rate from the previous quarter, and a high rate due to general fuel and energy.
i just do not see the threat, but since the media is harping on it, look for some protection before the CPI and PPI numbers come out.
