Personal consumption expenditures (the PCE Price Index) rose 0.2% month-over-month in November. This was in line with expectations of 0.2%. Year-over-year, the index increased 2.8% and was in line with expectations. The core PCE Index, which excludes the volatile food and energy price components, also came in at 0.2% MoM, in line with expectations. The core PCE Index also increased 2.8% YoY and was in line with expectations.
ABA’s Office of the Chief Economist believes that with PCE inflation closer to 3% than the Fed’s target of 2%, affordability will continue to be a concern for consumers. This could affect consumer sentiment and be a headwind for loan demand.










