Institutions: CPI and PPI Set the Tone for PCE, Elevated Overall Prices Strengthen Fed Rate Hike Expectations

On November 13 that institutional analysis indicates that with the release of the CPI and PPI inflation reports, economists can now submit their forecasts for the Federal Reserve's preferred inflation gauge, personal consumption expenditures (PCE). Although Friday's PPI data came in slightly below analysts' expectations, elevated price pressures have still reinforced market participants' expectations of a rate hike at the Fed's next meeting. Oxford Economics stated in a report: "The rise in overall prices will push the October PCE inflation rate to an annual level of 3.8%, up from 3.6% in September." (Jin10)