Rising CPI, PPI Point to 3.8% October PCE, Firming Rate-Hike Bets

Cointime reports: With CPI and PPI reports out, economists can now forecast the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures index. Oxford Economics said in a report that higher overall prices will push October PCE inflation to 3.8% year over year, up from 3.6% in September. Although Friday’s PPI data came in slightly below analyst expectations, elevated price pressure reinforced market expectations for a rate hike at the Fed’s next meeting.