Earlier this month, we commented on the rising inflation pressures evidenced by elevated CPI data. Today, more negative trends were confirmed by the Personal Consumption Expenditures (PCE) release which showed prices increasing by +3.8% on a year-over-year basis, +4.8% on a six-month basis, and +6% on a three-month basis. The consumer is undoubtedly feeling the impact as the growth rate of Real Personal Income (income growth minus inflation) has declined -1.8% over the past six months and the personal savings rate has collapsed to just 2.6%, a level last seen in 2022 and 2008.
May 28, 2026
Earlier this month, we commented on the rising inflation pressures evidenced by elevated CPI data. Today, more negative trends were confirmed by the Personal Consumption Expenditures (PCE) release which showed prices increasing by +3.8% on a year-over-year basis, +4.8% on a six-month basis, and +6% on a three-month basis. The consumer is undoubtedly feeling the impact as the growth rate of Real Personal Income (income growth minus inflation) has declined -1.8% over the past six months and the personal savings rate has collapsed to just 2.6%, a level last seen in 2022 and 2008.