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PCE inflation print set for Aug. 26 as Fed signal for EUR/USD

Consensus calls for headline PCE to ease to 3.6% year over year and core PCE to stay at 3.3%, ahead of the Jackson Hole and the next FOMC decision.

Reported · Written up by our desk · Major Pairs

Action Forex highlights that the Bureau of Economic Analysis is set to release the July personal consumption expenditures, or PCE, price index on Wednesday, August 26. The release is closely watched because PCE, especially core PCE, is the Federal Reserve’s preferred inflation gauge for guiding monetary policy decisions.

The outlet notes that consensus estimates call for headline PCE inflation to tick down slightly to 3.6% year over year, while core PCE is expected to remain steady at 3.3%. That setup is being treated as a test of whether underlying price pressures are cooling or staying elevated.

Action Forex also points to the timing, saying the PCE report comes after recent FOMC meeting minutes showed a 6 to 3 split among members and ahead of the Jackson Hole Symposium and the September FOMC interest rate decision.

The PCE data will be published as part of the broader personal income and outlays release, issued at the same time by the BEA, along with additional measures related to household financial conditions.

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