US September Core PCE Rises 3.1% YoY; Fed May Raise Rates by 25 Basis Points in December

October 29: According to Cailian Press, data released by the US Department of Commerce shows that the US personal consumption expenditures (PCE) price index rose 3.6% year-on-year in September, while the core PCE price index, excluding food and energy prices, rose 3.1% year-on-year.

Analysts believe that, affected by Middle East geopolitical conflicts pushing up international oil prices, rising energy prices drove an overall inflation rebound in September, and the market is watching whether companies will pass fuel costs on to consumers. Core PCE is the inflation gauge the Fed values most, and its services sub-component reflects whether domestic price pressures remain stubborn; should this sub-component rise further, financial markets will bet more heavily on the Fed raising rates by 25 basis points at its monetary policy meeting in December this year.