Inflation Slowing but Remains Well Above Fed's 2% Target

Inflation is slowing but not as quickly as earlier predicted

Core PCE price index, the Fed's preferred inflation gauge, expected to rise 0.3% in September

Headline PCE index including food and energy also forecast to increase 0.3%

Annual core inflation rate likely to fall slightly to 3.7% from 3.9%

Fed unlikely to raise interest rates as long as inflation keeps decelerating, though still far above 2% target