The Bureau of Economic Analysis (BEA) released Personal Income and Outlays data for January of 2022 today.
The spotlight on this post is Personal Consumption Expenditures (PCE) price data.
PCE differs from the CPI (Consumer Price Index) in that it includes expenses paid on behalf of consumers such as Medicare and company medical plans whereas the CPI only included expenses directly paid by consumers.
Neither index directly includes housing prices.
The "core" measures exclude food and energy.
PCE Details for January 2022
- The PCE price index for January increased 6.1 percent from one year ago
- Energy prices increased 25.9 percent
- Food prices increased 6.7 percent.
- Excluding food and energy, the PCE price index for January increased 5.2 percent from one year ago.
- PCE rose 0.6 percent from December.
- Core PCE rose 0.5 percent from December.
Chart Since 1971
This was yet another hot report, and things are actually worse than the BEA and BLS present because home prices are neither in the CPI nor the PCE.
CPI vs Case-Shiller Adjusted CPI
Case-Shiller home price data is as of December. At that time the CPI was up 7.04% for the year, it's now up 7.5% for the year as of January.
Factoring in home prices the CPI is up 9.88% in the last 12 months.
For discussion, please see Home-Price Growth Accelerates, 2021 Annual Surge Is the Most on Record
CPI Up Most in 40 Years
For more on the CPI, please see CPI Jumps Most Since February 1982, Up at Least 0.5% 9 Out of Eleven Months
Alleged "Benefits of Running the Economy Hot"
Meanwhile, Charles Evans, president and chief executive officer of the Chicago Fed wants to run the economy hot.
For discussion, please see Chicago Fed President Praises the "Benefits of Running the Economy Hot"
This post originated on MishTalk.Com.
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