This afternoon’s publications out of the United States served to underline the slowdown in American consumer spending and personal income levels. One note of confidence rang out amid the bearish figures, however, in the form of mildly heightened consumer inflation.
The Bureau of Economic Analysis published its monthly Core Personal Consumption Expenditures (PCE) Price Index today. The results came in higher than expectations, with consumer inflation, excluding food and energy, rising 0.3% in June.
This number is rumored to be the primary gauge used by the Federal Reserve to measure inflation, despite being released 15 days after the Core CPI report, which tends to receive the most attention by traders and brokers alike. Even though spending and confidence are in decline, the inflation report gives cause for optimism as higher prices tend to translate into growth during sluggish economic periods.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
