Goldman Sachs expects core PCE of 0.23%, slightly above core CPI and market consensus

Comparatively, after the CPI data, the market focus turned to the July core PCE data released on August 26. Goldman Sachs expects core PCE to rise 0.23% month-on-month in July, slightly higher than core CPI and market consensus. Among them, portfolio management fees are expected to increase by 8 basis points, reflecting second-quarter stock market earnings.

Goldman Sachs said upcoming methodological changes could cause PCE readings to fluctuate and reduce the annual core inflation rate. The bank expects core inflation to be close to 0.2% in August and believes that the Federal Reserve will keep interest rates stable until the end of the year.