The US PCE price index rose 0.3% month-over-month in August 2026, following a downwardly revised 0.1% gain in July and slightly below market expectations of 0.4%. The core PCE price index, excluding food and energy, increased 0.2%, also missing forecasts of 0.3%. Year-on-year, headline PCE inflation held at 3.4%, unchanged from a downwardly revised July reading, while core inflation remained at 3.0%. The PCE price index is the Fed’s preferred inflation gauge and has remained above its 2% target since 2021.