October Personal Income was up 0.2% in its smallest gain since April, and Personal Consumption Expenditures gained just +0.2% as well.

PCE core prices posted +0.2% for +1.9% over the year, up from +1.8% in September. The up-creep in prices probably reflects energy pass-through but illustrates inflation risks. These likely will abate if the economy slows. An inflation rate of under 2% is generally thought to be acceptable to Federal Reserve officials.

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