WALL STREET SET TO RAISE CORE PCE INFLATION FORECASTS AFTER HOT CPI REPORTSeptember's stronger-than-expected CPI data co | Hanami
WALL STREET SET TO RAISE CORE PCE INFLATION FORECASTS AFTER HOT CPI REPORT
September's stronger-than-expected CPI data could push core PCE inflation estimates to at least 0.3% MoM, up from the previous 0.21% consensus.
TD Securities has already raised its forecast to 0.36% from 0.23%.
Higher-than-expected prices across housing, apparel, education, vehicles and recreation are driving the revisions.
The key risk: The Fed's preferred inflation gauge may come in significantly hotter than previously expected, complicating the case for further rate cuts.
Thursday's PPI report will help refine the estimates.