PCE Inflation Set to Rise Ahead of Fed Meeting at Jackson Hole

The US Personal Consumption Expenditures (PCE) Price Index is expected to show a 0.2% month-over-month increase in July, according to forecasts.

This would be a slight acceleration from June's 0.1%, but still above the Federal Reserve's target of 2%. The core PCE index, which strips out seasonal fluctuations in food and energy prices, is seen growing at a 3.3% year-over-year rate.

The release of July's PCE data on Wednesday will be closely watched by traders and investors, who are looking for clues about the Fed's future monetary policy decisions.

Despite the expected inflation reading, some strategists believe that it may not have a significant impact on interest rates. The Federal Reserve's Chairman Kevin Warsh is set to speak at the Jackson Hole central bankers' meeting this week, and his comments are likely to be closely watched for any hints about the Fed's near-term policy.