Analyst: U.S. October PCE inflation may accelerate, expected to impact the Federal Reserve's interest rate cuts

ChainCatcher news, according to Jinshi reports, the Federal Reserve may not see more signs of inflation easing before deciding whether to cut interest rates again in December. After studying this week's CPI and PPI inflation data, many analysts predict that the Fed's preferred inflation measure, the PCE price index, will show that core prices, excluding the volatile food and energy categories, rose 2.8% year-on-year in October. This would represent a renewed acceleration in growth since September and means that the core PCE annualized rate has returned to the level seen in May.

However, this pain may be temporary. Citigroup economists expect that the core PCE monthly inflation rate may slow significantly in November. But the November data will not be released until New Year's Eve.