Capital Economics analyst Paul Ashworth, in a report on the August PPI data, said that the latest US inflation figures provide momentum for the Federal Reserve to begin cutting interest rates next week. As expected, PPI rose 0.2% month-on-month last month, while the July increase was revised downwards. The core index came in at 0.3%, exceeding expectations. Ashworth estimates that, combined with yesterday's CPI data, the PPI data "suggests a modest 0.14% month-on-month rise in the Fed's preferred core PCE measure," which is due to be released on September 27th. The Fed is expected to cut rates by at least 25 basis points next week, with Ashworth adding that the bar for a more substantial rate cut remains high. (Jin Shi)