FX.co ★ US Core PCE Inflation Cools to 3.3% in Q2, Easing From 3.6%

Core Personal Consumption Expenditures (PCE) prices in the United States slowed in the second quarter, with the annual rate easing to 3.30% from 3.60% previously. Both readings refer to the second quarter of 2026, with the latest update released on 30 September 2026.

The moderation in core PCE — the Federal Reserve’s preferred gauge of underlying inflation — signals a gradual cooling in price pressures compared with the earlier 3.60% pace. While inflation remains above levels typically associated with long‑run price stability, the latest figure points to incremental progress in restraining underlying price growth.

Investors and policymakers are likely to scrutinize the softer 3.30% reading for clues on the future path of US monetary policy, as the Fed weighs evidence of easing inflation against broader economic conditions in the second quarter of 2026.