Capita Macro: Fed's favored PCE inflation index is expected to perform weakly

Odaily Planet Daily News Although the U.S. core CPI rose 0.3% month-on-month in August, the Fed's favored inflation indicator, the "Core PCE Inflation Index", may have risen less than 0.2% last month. This is the conclusion that analysts have drawn after studying the CPI and PPI data released this week. If they are correct, the core PCE inflation rate in August may be stable at 2.9% year-on-year, which could give the Fed a more optimistic view of price pressure at its September meeting. "In short, core PCE inflation will remain on track and will not be worse than the Fed's June forecast to rise to just above 3%." (Golden Ten)