Truflation Sees Persistent Inflation Pressures in US
A new forecast from Truflation predicts that U.S. inflation will persist in July, with the Personal Consumption Expenditures Price Index (PCE) likely to remain unchanged at 3.7% on an annual basis.
According to market consensus, the headline PCE is anticipated to see a 0.19% monthly uptick, while core PCE is expected to advance 0.2% month over month, keeping the yearly rate at 3.3%.
The Federal Reserve's interest rate hike plans are unlikely to be impacted by this forecast, with Truflation reiterating that it expects the Fed to keep rates unchanged at its September gathering and not raise borrowing costs for the rest of the year.
Market pricing shows a 65% likelihood of a pause in September, with about 40% odds of a hike by October and 45% by December.