PCE to affirm inflation is slowing -- but watch out for revisions

[mahatmakanejeeves]

ECONOMIC REPORT
PCE to affirm inflation is slowing — but watch out for revisions
Easing price pressures keep Fed on path to cut interest rates

By Jeffry Bartash
Published: July 25, 2024 at 2:14 p.m. ET

The most critical inflation gauge in the U.S. is likely to affirm that price increases are slowing, but the June report might also contain a bit of unwelcome news. ... Here’s what to watch for in the personal consumption expenditures price index, due out Friday morning.

Headline inflation

The PCE index is forecast to rise 0.1% in June after no change in May. Increases ranging from 0.1% to 0.2% a month are seen as consistent with low U.S. inflation.

The Federal Reserve views the PCE as the most accurate measure of price changes, rather than the better-known consumer price index.

So far, so good. But …

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