FX.co ★ US Core PCE Prices Rise Less than Expected

The US core PCE price index – the Federal Reserve’s preferred gauge of underlying inflation – rose 0.2% month-on-month in August 2026, below the 0.3% increase anticipated by markets. This followed a downward revision to July’s figure, with the monthly gain now put at 0.1%, rather than the previously reported 0.2%. On a year-on-year basis, core PCE inflation climbed 3.0% in August, also coming in under the consensus forecast of 3.3%. While both the monthly and annual readings were softer than expected, underlying price pressures remain above the Fed’s 2% inflation target. The data thus point to some moderation in inflation, even as the annual rate shows that price growth has not yet returned to the central bank’s objective.