TD Securities Revises August Core PCE Forecast Upward After Stronger PPI Data

TD Securities economists Eli Nir and Oscar Munoz have raised their forecast for the August core Personal Consumption Expenditures (PCE) inflation, citing stronger components in the recent Producer Price Index (PPI) report. The revised forecast now stands at 0.24% month-over-month and 3.3% year-over-year.

In addition to the core PCE update, the headline PCE inflation forecast was also adjusted higher, reaching 0.33% month-over-month and 3.8% year-over-year, according to FX Street. These revisions suggest a more persistent inflationary pressure than previously anticipated for August.

For Japanese markets, this inflation outlook from TD Securities may influence currency and equity strategies, as investors monitor U.S. inflation trends closely amid global monetary policy shifts.