The US personal consumer expenditure deflator remains in disinflation. Durable goods prices sank ever deeper into deflation. Market-based prices showed disinflation, as did services excluding financial service (financial service prices often follow market valuation). There was an intensely technical clarification about calculating owners’ equivalent rent—price no real person pays or cares about, but which excites economists. The clarification makes it unlikely OER will add more to inflation this year.
UBS On-Air: Market Moves