The United States’ core Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred gauge of underlying inflation—slowed to 3.7% year-over-year in June 2026, down from 4.1% in May. The latest data, updated on 30 July 2026, compares price changes in June 2026 against June 2025, in line with the year-over-year methodology.
The prior reading for May, released earlier and now confirmed at 4.1%, measured inflation versus May 2025. The June figure indicates a further easing in price pressures compared with the same month a year ago, suggesting that underlying consumer inflation in the U.S. continues to decelerate on an annual basis.
This moderation in the core PCE index may be closely watched by policymakers and markets, as it provides a key signal on the trajectory of inflation after an extended period of elevated price growth. While still above the Federal Reserve’s typical longer-run goal of 2%, the move from 4.1% to 3.7% year-over-year in June points to a gradual cooling trend in core inflation dynamics.
