US: Core PCE should firm to 2.0% y/y - TDS

According to analysts at TD Securities, the US personal income and outlays will give an update on inflationary pressures for July, while TD is in line with consensus for core PCE which should firm to 2.0% y/y on a 0.2% m/m increase.

Key Quotes

“Headline PCE inflation should also edge higher by 0.1pp to 2.3% y/y, which would mark the strongest pace since 2012. Initial jobless claims will be released alongside PCE and the market consensus is for a modest increase to 213k for the week of August 25.”