FX.co ★ US PCE Inflation Rises Less Than Expected in August

The US Personal Consumption Expenditures (PCE) price index increased 0.3% month-over-month in August 2026, following a downwardly revised 0.1% gain in July and coming in slightly below market expectations of a 0.4% rise.

Goods prices climbed 0.3%, rebounding from a 0.1% decline in July. This was driven primarily by a 0.5% increase in nondurable goods, largely reflecting a 4.4% surge in gasoline and other energy goods. In contrast, inflation in durable goods moderated to 0.1% from 0.4% in the previous month.

Services prices also picked up, rising 0.3% after a 0.1% increase in July. The acceleration was led by higher costs for transportation services (up 1.4%) and for food services and accommodations (up 0.5%).

The core PCE price index, which excludes food and energy, advanced 0.2% on the month, undershooting consensus forecasts of a 0.3% gain.

On an annual basis, headline PCE inflation remained at 3.4%, unchanged from a downwardly revised reading for July, while core PCE inflation held steady at 3.0%. The PCE price index, the Federal Reserve’s preferred measure of inflation, has stayed above the central bank’s 2% target since 2021.