US: Annual core PCE price index drops to 1.8% in October vs 1.9% expected

The data published by the U.S. Bureau of Economic Analysis on Thursday revealed that the core Personal Consumption Expenditures (PCE) price index, the Fed's preferred gauge of inflation, rose 0.1% and 1.8% in October on a monthly and yearly basis, respectively, and both readings fell short of analysts' estimates.

Key takeaways from the press release

• The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.1 percent.
• Personal income increased $84.9 billion (0.5 percent) in October.
• Disposable personal income (DPI) increased $81.7 billion (0.5 percent) and personal consumption expenditures (PCE) increased $86.9 billion (0.6 percent).
• Personal saving was $967.8 billion in October and the personal saving rate, personal saving as a percentage of disposable personal income, was 6.2 percent.