The Fed's Main Inflation Measure Will Be Released Wednesday. Here's What to Expect
Data is expected to show ongoing price pressures and consumers who nevertheless continue to spend.
TL;DR
- The primary inflation gauge for the Federal Reserve, the personal consumption expenditures price index, is expected to show ongoing price pressures.
- Core inflation is forecast to be unchanged from July and still well above the Fed's 2% target.
- Consumers are expected to continue spending, despite faltering sentiment readings.
- Federal Reserve officials have indicated that further rate hikes may be necessary to bring inflation down to the target.
- Data revisions from the Bureau of Economic Analysis may lower recent PCE inflation readings but are unlikely to alter the forward-looking outlook.
- Markets are pricing in a strong probability of an October rate hike, with another potentially to follow.