Wall Street Economists Adjust Core PCE Forecasts Following CPI Data

Wall Street economists have revised their forecasts for the August core Personal Consumption Expenditures (PCE) index after the release of the latest Consumer Price Index (CPI) data. The updated estimates indicate a shift towards higher inflation expectations, with many banks projecting figures in the high 0.20% range, and some anticipating increases of 0.30% or more.

Barclays has adjusted its forecast to 0.25%, up from a previous estimate of 0.22%. Goldman Sachs has also raised its prediction to 0.26%, compared to 0.24% prior to the CPI release. Nomura's forecast now stands at 0.278%, an increase from 0.245%. Bank of America and TD have made more significant adjustments, with forecasts of 0.30% and 0.32%, respectively, both higher than their earlier estimates.

Mizuho has provided two forecasts based on different methodologies, projecting 0.30% using the old method and 0.40% with the new approach. These adjustments reflect a growing consensus among economists that inflation pressures may be more persistent than previously anticipated.

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Source: KLEA News