FX.co ★ US Core Inflation Gauge Inches Lower as PCE Price Index Slips to 2.8% in January

The US PCE Price Index, the Federal Reserve’s preferred measure of inflation, eased slightly in January 2026, reinforcing signs of a gradual cooling in price pressures. On a year-over-year basis, the index stood at 2.8% in January, down from 2.9% recorded in December 2025.

The data, updated on 13 March 2026, compare inflation in each month with the same month a year earlier. December’s figure reflected the change from December 2025 versus December a year earlier, while January’s reading measures the change from January 2026 versus January a year earlier. The marginal decline suggests inflation is edging closer to the Fed’s longer-term target range, though it remains slightly elevated and will likely keep policymakers attentive to the trajectory of price growth in the months ahead.