Spending by U.S. households fell by 0.2% MoM in December.  The personal consumption expenditures (PCE) price index, an alternative to the consumer price index (CPI) as a measure of inflation, was up 5% YoY in December. More: Consumer spending accounts for more than two-thirds of U.S. economic activity. The core PCE, which excludes food and energy prices, was up 4.4% annually in December — the lowest mark since Oct. 2021. The personal savings rate rose to 3.4% in December from 2.9% in November.  Personal income grew by 0.2%, and average wages increased by 0.3% in December.  U.S. retail sales fell by 1.1% from November to December, the largest monthly decline in a year. Zoom Out: The slowdown in economic activity in the U.S. coincides with lower consumer price increases. Since peaking at 9.1% in June, the inflation rate has fallen for six straight months.  A University of Michigan survey found that consumers' 12-month inflation expectations fell to 3.9% in January — the lowest estimate in 21 months.