FX.co ★ U.S. Dallas Fed PCE Inflation Ticks Up to 2.8% in May, Reversing Prior Slowdown

The Dallas Federal Reserve’s trimmed mean PCE inflation gauge rose to 2.80% in May 2026, up from 2.40% in April, signaling renewed price pressures in the United States. The latest reading, updated on 25 June 2026, marks a reversal from the moderation seen in April, when the indicator had paused at 2.40%.

The Dallas Fed PCE measure, closely watched by markets and policymakers as a gauge of underlying inflation trends, suggests that disinflation momentum may be losing steam. The move higher in May will likely feed into expectations for the Federal Reserve’s next policy steps, as investors reassess the timing and scale of any potential interest-rate cuts.

With the indicator now pushing further above the Fed’s 2% inflation target, attention will remain on upcoming data releases to determine whether May’s uptick reflects a temporary bump or the start of a more persistent re-acceleration in underlying price growth.