The US Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of underlying inflation, rose 0.4% month-over-month in December 2025, doubling the 0.2% increase recorded in October 2025. The latest data, updated on 20 February 2026, indicate a firmer pickup in price pressures at the close of the year.
Measured on a month-over-month basis, the December reading reflects a stronger pace of core inflation compared with the earlier autumn data. While October’s 0.2% gain had suggested a more moderate inflation environment, the December move to 0.4% signals that underlying price momentum strengthened into year-end, as each figure compares the given month’s change to the immediately preceding month.
This acceleration in the Core PCE Price Index will likely be a key reference point for policymakers and market participants assessing the trajectory of US inflation through the turn of the year, given the index’s role in tracking underlying consumer price trends.
