FX.co ★ US Headline PCE Inflation Expected to Pick Up

The U.S. Personal Consumption Expenditures (PCE) price index is forecasted to rise by 0.3% month-over-month in August 2025, following a 0.2% increase in July. Core PCE, which omits food and energy prices, is anticipated to grow by 0.2%, slightly less than the 0.3% recorded in the previous two months. On an annual basis, the headline PCE inflation rate is expected to reach 2.7%, marking the highest level in six months, compared to 2.6% in both July and June. Meanwhile, Core PCE inflation is projected to steady at 2.9%. The PCE index is the Federal Reserve's preferred measure of inflation.