FX.co ★ US PCE Inflation In Line With Forecasts

The U.S. PCE Price Index rose by 0.3% in August 2025, following a 0.2% increase in July, meeting market predictions. Goods prices experienced a 0.1% rise, recovering from a 0.1% decline the previous month, while the cost of services saw a consistent increase of 0.3%, mirroring July's figures. The core PCE, which excludes volatile food and energy prices, went up by 0.2%, maintaining the same rate as the revised figure for July and aligning with forecasts. Concurrently, food prices climbed by 0.5% after a 0.1% decrease the month before, and energy goods and services costs also saw a rebound, growing by 0.8% compared to a 1.1% drop. Year-over-year, the headline PCE inflation rate grew to 2.7%—the highest level in six months—from 2.6% in both July and June. Meanwhile, core PCE inflation remained steady at 2.9%, with both annual metrics aligning with anticipated figures.