U.S. Core Personal Consumption Expenditures Price Index Data to be Released Today

U.S. Core Personal Consumption Expenditures  Price Index Data to be Released Today 

The Bureau of Economic Analysis will release the latest Core Personal Consumption Expenditures Price Index on July 26, 2024, at 12:30 GMT. It is one of the important indicators describing changes in prices of goods and services, excluding food and energy, monthly. With a prior advance of 0.1%, the forecast for the upcoming release is 0.0%.

Upbeat core PCE price index data, indicative of price growth and higher than forecast, may indicate mounting inflationary pressures hitting the U.S. economy. In this case, USD quotes may get supported, since higher inflation may increase expectations of a more radical monetary policy on the part of the Fed. The investors could treat stronger price growth as testimony that the Fed could use tightening measures to fight off inflation.

On the other hand, if the announced Core PCE Price Index comes in lower than the forecast—a case showing no rise or decline in prices—this could be indicative of subdued pressures of inflation. This could see Fed policy prospects reviewed as a result, leading to a weaker USD. 

Core PCE Price Index data is critical in determining sentiment and shaping policy expectations during the week the release date nears. Thus, analysts and investors are going to be watching the numbers closely, ready to shift positions based on new findings about inflation dynamics. The results on July 26, 2024, will provide critical information on the trajectory of U.S. inflation and its potential impact on economic and monetary policy.

U.S. Personal Consumption Expenditures (PCE) Price Index Data to Influence Dollar Movement

The last US PCE Price Index is due for release by the Bureau of Economic Analysis on July 26, 2024, which measures inflation and changes in the prices of products and services for American consumers. The next release is predicted to present a 0.2%. which, in the previous month, was 0.0%.

If actual PCE Price Index data is greater than the expected  0.2% it could be an inflation indicator suggesting that the inflation rate within the economy is gradually increasing even beyond levels of 0.2%. This may be beneficial for the USD quotes. 

On the other hand, if the reported PCE Price Index is lower than the forecast, meaning that there is either very little or no inflation happening. It may indicate weaker inflation pressure. This situation may call for a change in policy expectations of the US Fed, which commonly has bearings on the USD.