The Federal Reserve’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) price index, accelerated in the United States during the second quarter of 2026, underscoring persistent price pressures in the economy. According to data updated on 30 July 2026, core PCE prices rose to 5.1% in the second quarter, up from 4.6% in the first quarter of 2026.
The move from 4.6% to 5.1% signals a renewed uptick in underlying inflation after earlier signs of moderation. The first-quarter reading had suggested some stabilization, but the latest figures indicate that inflationary forces remain entrenched, potentially complicating the outlook for monetary policy and financial markets.
With core PCE remaining well above levels typically associated with price stability, investors and policymakers will be closely watching upcoming data releases and central bank communications for clues on how long higher inflation might persist and what it could mean for interest rates and economic growth in the second half of 2026.
