[Citi: The Fed's preferred inflation indicator is expected to support a 25BP rate cut in November] Golden Finance reported that Citi economist Andrew Hollenhorst believes that the US PPI index, combined with yesterday's unexpectedly high CPI, supports the Fed's decision to cut interest rates by 25 basis points next month. The Fed's preferred inflation indicator PCE combines CPI and PPI price data, so the combination of these two data allows forecasters to make accurate predictions for PCE in September. Citi believes that the core PCE, which excludes volatile food and energy prices, will increase by 0.21% month-on-month in September, while the 12-month PCE will drop from 2.7% in August to 2.6%. Hollenhorst pointed out that this should allow the Fed to continue to cut interest rates.