Fed’s Preferred Price Gauge to Reinforce Rate Cuts: Eco Week

News Snapshot:

(Bloomberg) -- US inflation figures in the coming week will reinforce that long-awaited interest-rate cuts are coming soon, while a reading on consumer spending is seen indicating that the central bank has been successful at keeping the expansion intact. Economists see the personal consumption expenditures price index excluding food and energy — the Fed’s preferred measure of underlying inflation — rising 0.2% in July for a second month. That would pull the three-month annualized rate of so-called core inflation down to 2.1%, a smidgen above the central bank’s 2% goal. Economists in the Bloomberg survey also expect consumer outlays, unadjusted...