FX.co ★ US Core PCE Inflation Cools to 3.4% in Q2 2026, Extending Disinflation Trend

Core Personal Consumption Expenditures (PCE) prices in the United States eased to 3.40% in the second quarter of 2026, down from 4.40% in the first quarter, according to data updated on 30 July 2026. The decline marks a continued moderation in underlying inflation pressures and extends the disinflation trend seen since early 2026.

The move from 4.40% to 3.40% in core PCE—often watched as a key gauge of underlying price dynamics—suggests that price growth is decelerating more firmly across the US economy. The first-quarter 2026 reading of 4.40% had highlighted persistent inflation pressures, but the latest numbers point to a gradual cooling that may influence expectations for future monetary policy decisions.

With core PCE now a full percentage point lower than in the previous quarter, markets and policymakers are likely to reassess the balance between supporting growth and keeping inflation contained, as the disinflation process progresses through the remainder of 2026.