US August Core PCE Year-on-Year Expected at 2.9%, Focus on Inflation Impact

According to ChainCatcher, citing a report from Golden Ten Data, Capital.com analyst Kyle Rodda expects the US core PCE annual rate for August to record 2.9%, indicating that inflation remains on a steady track and is above the Federal Reserve's 2% target. The market is closely watching the impact of service and goods inflation on the data. Service inflation is a key driver of rising prices, while goods inflation is showing signs of a rebound. The interest rate market believes there is a 90% probability of a Federal Reserve rate cut in November and 75% in December. If the core PCE annual rate rises above 3%, it may trigger doubts among investors about the Fed's ability to cut rates.