The U.S. November Personal Income report shows huge consumption but also reflects the effects of higher prices in faltering real disposable income and a lack of savings.

November Personal Income printed up 0.4%, Personal Consumption Expenditures were up a huge 1.1%. But PCE core prices posted up 0.2% for a 2.2% gain over the year. The latter is a jump from the prior reading of 1.9% that certainly will leave the Fed uncomfortable; it was last higher at 2.3% in March 2007 but reversed.

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