US Core PCE Prices Rise Less than Expected
2026-09-30 12:31
By
Agna Gabriel
1 min. read
The US core PCE price index, the Federal Reserve’s preferred measure of underlying inflation, increased 0.2% month-on-month in August 2026, coming in below the 0.3% rise expected by markets.
The latest reading followed a downward revision to July’s figure, with the monthly increase now estimated at 0.1%, compared with the previously reported 0.2%.
On an annual basis, core PCE inflation rose 3.0% in August, also undershooting expectations of 3.3%.
Despite the softer-than-anticipated monthly and yearly readings, underlying price pressures remain above the Federal Reserve’s 2% inflation target.
The data therefore provided some evidence of moderation in inflation, although the annual rate indicates that price growth has not yet returned to the central bank’s objective.