25.06.202612:39:10UTC+00US PCE Inflation Rises Less than Expected

The US Personal Consumption Expenditures (PCE) price index rose 0.4% month over month in May 2026, coming in below market expectations of a 0.5% increase and matching the pace recorded in April. Goods inflation eased to 0.4% from 0.7%, while services inflation picked up to 0.5% from 0.3% in each of the previous two months.

The core PCE price index, which excludes food and energy, increased 0.3% on the month, the same rate as in April and in line with market forecasts.

On an annual basis, headline PCE inflation accelerated for a third consecutive month, rising to 4.1% from 3.8%. The result was broadly in line with expectations and marked the highest reading since April 2023. Core PCE inflation edged up to 3.4% from 3.3%, also matching forecasts and reaching its highest level since October 2023.

At its June 2026 policy meeting, the Federal Reserve raised its inflation projections for the year, forecasting headline PCE inflation at 3.6% and core PCE inflation at 3.3%, both still well above the central bank’s 2% target.