FX.co ★ US Core Inflation Gauge Ticks Higher in April, Adding Pressure to Fed Outlook

The U.S. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, accelerated in April 2026, underscoring persistent price pressures in the world’s largest economy. On a year-over-year basis, the index rose 3.8% in April, up from 3.5% in March 2026.

The data, updated on 28 May 2026, show that inflation is moving further above the Fed’s 2% target when comparing each month to the same period a year earlier. The March reading reflected a 3.5% increase over March 2025, while April’s figure marks a stronger 3.8% gain compared with April 2025.

The uptick in the PCE Price Index suggests that disinflationary momentum has stalled, complicating expectations for potential interest rate cuts. Markets and policymakers will be watching upcoming releases closely to determine whether April’s rise signals a temporary bump or a more durable reacceleration in underlying price pressures.