The US Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of underlying inflation, eased to 3.3% year-over-year in June 2026, down from 3.4% in May 2026. The latest reading, updated on 30 July 2026, points to a continued but modest cooling in inflationary pressures.
Both the current and previous figures are measured on a year-over-year basis, comparing each month’s price changes to the same month a year earlier. The slight decline in June suggests underlying price growth is edging lower, reinforcing the narrative of a gradual disinflation trend rather than a sharp break in inflation dynamics.
While the move from 3.4% to 3.3% is incremental, it will be closely watched by markets and policymakers as they assess how quickly inflation is converging toward the Fed’s 2% target and what that implies for the future path of interest rates and broader financial conditions.
