PCE Preview

Below are the consensus estimates (per “Nicky Leaks” of the WSJ) for both headline and core PCE, which come out tomorrow at 8:30am New York time.

My preference is to focus on the month-over-month prints.

Year-over-year is polluted by old information from 11 months ago that doesn’t enhance our understanding of current inflation dynamics.

The month-over-month data is also useful to generate 3-month and 6-month moving averages, which is what policy makers rely on for assessing current trends.