August US inflation data shows cooling core prices, yet strong GDP revisions and resilient consumption keep the Federal Reserve's October rate hike path open.
Societe Generale is mentioned as the source of the analysis, not as a subject of the article.
Societe Generale analyst Jan Groen reports that August US Core PCE data missed expectations, though persistent service-sector price pressures remain a concern. Despite downward benchmark revisions, robust GDP and consumption figures suggest the economy maintains sufficient momentum to keep an October Federal Reserve rate hike on the table.
While core inflation has shown signs of softening, the combination of firm service-sector prices and strong GDP growth suggests the economy remains resilient, leaving the door open for a potential rate hike in October.