According to Jinshi Data, Bank of America economists said in a report that the core PCE inflation rate for June, which will be released later this month, is likely to be slightly below 0.2%. They said: "On an annualized basis, this would be in line with the Fed's 2% target."
A string of soft inflation reports has increased expectations for a rate cut in September. PPI unexpectedly rose in June, but Bank of America said that was largely due to services inflation, while "the details used to calculate PCE inflation were generally weak."
BofA also said base effects would keep annual growth at 2.6%.
