"Federal Mouth Bottle": Core commodity prices are expected to decline in PCE in August, but actually rise in CPI
Source: BlockBeats
Time: 2025-09-12 09:49:10
According to BlockBeats, on September 12, Wall Street Journal reporter Nick Timiraos, known as the "Federal Mouthbolt", posted on social media that due to the significant drop in prices in several commodity categories with weight higher than CPI in PCE in August, a larger gap or "wedge difference" formed between core PCE and core CPI last month. Analysts who leverage PCE through CPI and PPI data expect the Fed’s favored core inflation indicator rose by about 0.20% month-on-month (compared with 0.35% of CPI), which will keep the 12-month annual rate at 2.9%. It is particularly noteworthy that core commodity prices in PCE are expected to decline in August - and this part actually rises in CPI. Overall price is expected to rise by 0.24% month-on-month, pushing the 12-month annual rate to 2.7%.