According to ChainCatcher, inflation pressures have significantly decreased since peaking two years ago, but the pace of improvement has slowed in recent months. The PCE index is the Federal Reserve's preferred indicator for measuring price pressures. The Federal Reserve's goal is to maintain the PCE inflation rate at around 2% in the long term to sustain a healthy economy.
According to economists, the PCE price index is expected to rise by 0.20% month-on-month and 2.30% year-on-year in October. The core PCE inflation rate, excluding the more volatile food and energy prices, is expected to rise by 0.30% month-on-month and 2.80% year-on-year. Although economists expect both indicators to rise compared to September, analysts believe that price pressures are still improving. Russell Price, chief economist at Ameriprise Financial, pointed out that the higher readings in October 'do not undermine the long-term trend.'
It is worth noting that due to daylight saving time and the Thanksgiving holiday, this PCE data will be released on Wednesday at 21:30 Beijing time, instead of the usual Thursday at 20:00.