Actually, the drop in core PCE is due to the U.S. Department of Commerce revising its algorithm, which caused the core PCE data to decline. However, the previous value was also revised down from 3.3% to 3%, which matches the 3% announced this month. The month-on-month figure was revised down from 0.2% to 0.1%. Comparing the revised data, the month-on-month figure actually rebounded from 0.1% to 0.2%, but the rebound was below market expectations. Although it edged up slightly, it’s not a big issue. For the Fed, this does reduce the urgency of a rate hike in October. According to CME data, the probability of an October rate hike dropped from 47% to 37%, so this PCE data itself is still decent. A @Gate, trade more markets.