Economist: U.S. core PCE will not easily decline

Odaily reports that after the Personal Consumption Expenditures (PCE) index rose by 4.1% year-on-year in May, some economists predicted this might mark the peak of price increases. However, Joseph Brusuelas, Chief Economist at RSM, stated that the 0.3% increase in the core inflation rate and the 3.4% year-on-year rise may have lasting impact. Given the evident internal transmission pressure in the Producer Price Index (PPI) over the past few months, unlike the overall data, these prices are unlikely to drop easily.