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Analysts: US PCE inflation may accelerate in October, expected to influence Fed to cut rates

Analysts: US PCE inflation may accelerate in October, expected to influence Fed to cut rates

Bitget2024/11/14 16:58

The Federal Reserve may not see any more signs of easing inflation before it decides whether to cut interest rates again in December, according to reports. After studying this week's CPI and PPI inflation data, many analysts are predicting that the Fed's preferred inflation gauge, the PCE price index, will show a 2.8 per cent year-on-year rise in core prices in October, excluding the volatile food and energy categories. This would be another acceleration since September and would mean that core PCE annualisation has returned to May levels.

However, the pain may be temporary. Citi economists expect that monthly core PCE inflation could slow sharply in November. However, November's data will not be released until New Year's Eve.

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