Many institutions have made predictions and assessments on tomorrow's July PCE data. The assessment results show that inflation is under pressure in the short term, but it is relatively mild.
The main inflationary pressure comes from the current monthly rate data. As for the annual rate, the current forecast remains at around 2.6%, and the 6-month annual rate pressure becomes less pressure because the 0.5% data in January is excluded.
Overall, the results of the institutional analysis show that inflation has shown signs of a slight rebound, but combined with the upward revision of today's GDP data, this slight inflation rebound is very likely to be digested and considered as a normal data fluctuation.
If tomorrow's data is released in the same way as currently expected, it will not have any impact on the expectation of a rate cut in September. Instead, combined with today's GDP data, it will create an appearance of a stable economy.
For the current environment, let the market continue to trade rate cuts and remain optimistic and stable.
