US inflation back to undershooting 2 per cent ahead of FOMC meeting
Tuesday, May 2, 2017 at 11:17PM
Gold Prices

A note from JP Morgan economists on this morning’s release of the Personal Income and Outlays report for March, in which both the consumption and inflation measures arrived weaker than expected (our bold):

On consumption, real consumer spending increased 0.3% in March while nominal spending was basically unchanged. These figures were softer-than-expected and included a 6.5% surge in real spending on household utilities. Excluding this jump (which was weather-related), overall real spending ticked up only 0.1% in March. … Elsewhere in the report, the core PCE deflator declined 0.138% in March, bringing the year-ago change in the index down from 1.77% in February to 1.56% in March. The March figures were close to, although slightly below, expectations. They are still notable, however, because the monthly change was the second weakest on record. Even excluding the very large drop in prices for cellular telephone services (which we estimate subtracted 0.08%-pt from the monthly change in the core PCE deflator), it still looks like March was a weak month for core inflation. The headline PCE deflator was also weak, declining 0.2% in March.



If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.





Winners of the GoldDrivers Stock Picking Competition 2007 



 Follow us on TWITTER @goldprices



Article originally appeared on Gold Prices (
See website for complete article licensing information.