The Dallas Fed’s measure of the Personal Consumption Expenditures (PCE) index for the United States rose to 2.20% in December 2025, up from 1.50% in October 2025. The latest reading, updated on 20 February 2026, points to a noticeable acceleration in price dynamics over the final months of the year.
This shift from 1.50% to 2.20% suggests that inflationary pressures, as captured by the Dallas Fed’s PCE gauge, have strengthened into year-end. The move back above the lower readings seen in October may influence how investors, analysts and policymakers assess the trajectory of U.S. inflation and the potential path of future monetary policy.
Market participants are likely to view the December uptick as an indication that disinflationary momentum has eased, at least temporarily, putting renewed focus on upcoming data releases to determine whether the Dallas Fed PCE stabilizes near current levels or continues to edge higher in early 2026.
