US PCE inflation report scheduled for release Wednesday

The Bureau of Economic Analysis is scheduled to release the July Personal Consumption Expenditures (PCE) price index report on Wednesday, August 26. This report is a critical indicator for the Federal Reserve, as the Core PCE is the central bank’s preferred metric for guiding monetary policy.

Consensus estimates suggest that headline PCE inflation may moderate slightly to 3.6% year-over-year, while core PCE is projected to remain steady at 3.3% year-over-year. The release will also include other significant household financial metrics, such as personal income, disposable personal income, personal spending, and the personal savings rate.

The timing of this data is particularly impactful as it follows recent FOMC meeting minutes and precedes the Jackson Hole Symposium and the September FOMC interest rate decision.