The U.S. is set to release key economic data this week, including the core PCE price index for July and the final August Michigan Consumer Sentiment Index. The PCE price index, expected to show a 0.3% increase from last month, could push the year-on-year inflation rate to its highest point since February at 2.9%. This would mark the third consecutive monthly increase in PCE. Meanwhile, economists warn that persistent high inflation may limit further interest rate cuts by the Federal Reserve later this year. Further insights on inflation, specifically regarding the August CPI release, due in two weeks, could influence the Fed’s decisions during its September meeting.