The faster growth rate of consumption relative to income over the month caused the savings rate to decline by 0.3% to 5.3%. The savings rate has been declining modestly in recent months; however, it still remains elevated relative to most years of the past decade. Households are continuing to desire savings to help rebuild lost wealth and to create a cushion to deal with uncertainty.
As measured by the PCE deflator, prices increased 0.1% over the month. From a year prior, the PCE deflator was 1.4% higher. The core PCE deflator, which excludes energy and food prices, was unchanged over the month and was 1.2% higher from the year prior.
|m/m % change||Sep||Aug||Jul||Jun||May||Apr|
|Core PCE Deflator||0.0||0.1||0.1||0.1||0.1||0.0|
|Savings Rate (level)||5.3||5.6||5.7||6.0||6.0||5.8|
10.11.01 (Source: Bureau of Economic Analysis)