FX.co ★ US Core PCE Inflation Ticks Higher in May, Signaling Persistent Price Pressures

The United States’ core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of underlying inflation, accelerated in May 2026, underscoring ongoing price pressures in the economy. Month-over-month, the core PCE rose 0.3% in May, up from a 0.2% increase in April 2026.

On a month-over-month basis, the “actual” May reading reflects the change in prices from April to May, while the “previous” figure captures the change from March to April. The step-up from 0.2% to 0.3% suggests that underlying inflation momentum strengthened slightly as the second quarter progressed.

The data, updated on 25 June 2026, will likely feed into market expectations about the Fed’s policy trajectory, as investors assess whether the latest uptick represents a temporary bump or a sign that disinflation is losing traction.