Prof G Markets · Thursday, October 1, 2026
The Personal Consumption Expenditures (PCE) index showed a 3.4% annual increase, lower than anticipated, but still significantly above the Federal Reserve's 2% target. Core PCE rose 3% annually. Despite this, consumer spending saw its largest monthly increase in over a year, and the personal savings rate dropped.
“Consumer prices rose less than expected in August, but inflation is still well above the Fed's target.”
“The Personal Consumption Expenditures Index, the Fed's preferred measure of inflation, rose 3.4% from a year earlier and 0.3% from July.”
“Meanwhile, Core PCE, which excludes food and energy, rose 3% annually.”