Headline PCE is expected to decline -0.07% for June, lowering the 12-month rate to 3.7%, reports WSJ's Timiraos citing forecasters who transpose PPI and CPI into PCE

The anticipated decline in the PCE for June suggests a weakening in consumer price pressures, which may reinforce the narrative of easing inflation.

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With the 12-month rate expected to drop to 3.7%, this could realign expectations for monetary policy, possibly influencing the Fed's approach to interest rates going forward. Traders should consider how this data fits into the broader economic context, especially in relation to recent CPI and PPI trends.

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