FX.co ★ PCE Prices Rise Roughly as Expected in September

In September 2025, the US Personal Consumption Expenditures (PCE) price index experienced a 0.3% rise compared to the previous month, maintaining the same growth rate as August and aligning with market forecasts. Goods prices saw a significant increase of 0.5%, compared to the 0.1% rise in the prior month, while service prices grew more modestly at 0.2%, down from 0.3% in August. The core PCE index, which filters out volatile food and energy prices, climbed by 0.2%, consistent with August figures and analysts' predictions. In other developments, food costs saw a 0.4% uptick following a 0.5% rise in the previous month, while energy goods and services experienced a substantial surge of 1.7%, up from 0.8%. On an annual basis, the headline PCE inflation rate increased to 2.8%, the highest since April 2024, from 2.7% in August, meeting expectations. Conversely, core PCE inflation showed a slight deceleration to 2.8%, down from 2.9% in August, contrary to forecasts suggesting it would remain steady at 2.9%. The PCE index continues to be the Federal Reserve's favored measure of inflation. The release of the September data was delayed by more than a month due to a government shutdown.