US: Core PCE price index to surge by 0.1% in August - Danske Bank

FXStreet (Delhi) – Research Team at Danske Bank expect the US core PCE price index for August to increase 0.1% m/m taking annual core inflation to 1.3% as the strong USD and low commodity prices continue to restrain core inflation in the US.

Key Quotes

“Headline PCE is likely to be flat on the month with annual inflation a modest 0.3%. In terms of spending, solid retail and auto sales data suggest that personal spending increased a healthy 0.4% m/m. Personal income is supported by continued strong job growth and we expect an 0.5% m/m increase in August.”