BMO Analysts Note Inflation Cooling Exceeds Expectations

Analysts at the Bank of Montreal (BMO) reported that annual benchmark revisions by the U.S. Bureau of Economic Analysis show a larger-than-expected decline in the Federal Reserve's preferred inflation metric. The August core PCE rose less than anticipated, with the year-over-year growth rate slowing to 3%, below the market expectation of 3.3%, which analysts suggest reduces the urgency for a rate hike in October.