Core PCE Inflation Shows Moderate Increase in August, 2026-A Little More Inflation Means Making the Paycheck Stretch

Core inflation is up a little, which means consumers should expect everyday prices to continue creeping higher. It may not be dramatic, but over time, those small increases can make the paycheck stretch a little further.

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Other economic reports indicate that wages are also rising somewhat, which helps offset some of the additional costs. However, interest rates remain relatively high, making borrowing more expensive. For those who have the ability to do so, putting a little money away can provide some breathing room when prices or unexpected expenses come along.

Core PCE Inflation Shows Moderate Increase in August

The latest Core Personal Consumption Expenditures (PCE) Price Index provides a relatively moderate inflation reading for August, with underlying consumer prices increasing but coming in below expectations.

• Core PCE increased 0.2% in August, up from 0.1% in July but below the 0.3% market forecast.
• On a year-over-year basis, core PCE increased 3.0%, unchanged from July and still above the Federal Reserve’s 2% inflation objective.
• The measure excludes food and energy, making it useful for examining underlying inflation trends without some of the volatility associated with those categories.
• The broader PCE index increased 0.3% from July and 3.4% over the previous year, also coming in below expectations.
• The report provides a mixed economic picture: inflation remains elevated, but the slower-than-expected increase may reduce immediate pressure for additional monetary tightening while consumer spending remained strong in August.

Investing.com. (2026, September 30). United States Core PCE Price Index MoM. Investing.com. https://www.investing.com/economic-calendar/core-pce-price-index-61