Latest Updates: Related to Inflation

Fresh Data Signals Slower Growth and Lower Prices Ahead

12/01/2022

This morning, the Fed’s preferred inflation measure, the Personal Consumption Expenditures (PCE) core price index rose by just +0.2% in October, below forecast and a welcome deceleration from +0.5% in the previous month. On a year-over-year basis, core PCE slowed from +5.2% to +5.0%, encouraging, but still too hot.

Also, this morning, the personal savings rate declined from 2.4% to 2.3% in October, a 17-year low and less than half of where it began the year. Higher consumer prices have clearly eaten into savings, and borrowing is up. This isn’t sustainable. As a result, consumer spending is poised to slow further in the coming months, which reinforces the idea that recession is on the horizon.

Read the full article

Read more Economic Commentary

Learn More From HilltopSecurities

Market Attention Turns to Fed Talk and Mounting Ukraine Threat

Stressed Consumers Cut Back During the Holidays, but Help is on the Way

Thank you for visiting the HilltopSecurities website.
For best viewing experience, we recommend using Chrome, Firefox, Safari, or Microsoft Edge.