Institution: December core PCE inflation is expected to remain stable, providing support for the Federal Reserve to ease policy

ChainCatcher news, according to Jinshi reports, with the release of CPI and PPI data this week, economists can now predict the crucial core PCE inflation data for December very accurately------the Fed's preferred inflation indicator.

Predictions coming in this morning indicate that the core PCE price increase in December will be below 0.2%: early forecasts range from Morgan Stanley's 0.16% to Pantheon Macroeconomics' 0.19%. These figures will keep the core PCE inflation annual rate at 2.8%, unchanged from November. However, the trends for 3-month and 6-month will move in the right direction.

Analyst Sam Tombs from Pantheon Macroeconomics stated, "We still believe that core PCE inflation will decline slightly over the next two months, which supports the FOMC's easing policy at the end of March."