0954 ET - While July core PCE rose in the latest inflation reading, it won't be enough to convince the Fed that they need to hike as soon as September, Capital Economics says. However, with the annual core rate at 3.3% and Capital's upbeat forecast for growth and the labor market, it may be a matter of when, not if, rates are raised. The gain in core PCE reflected a 0.15% month-over-month rise in core goods and a 0.27% rise in services prices. The latter was attributable to the portfolio management component, the economists say. That component should be revised lower in September when the BEA incorporates its methodology changes for measuring these prices.
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