Bloomberg Surveillance · Wednesday, August 26, 2026
The Personal Consumption Expenditures (PCE) price index for July showed a 0.2% increase month-over-month, rebounding from a previous decrease and exceeding estimates. Annually, the PCE price index rose 3.7%, matching June's rate. The core PCE, excluding food and energy, held steady year-over-year at 3.3% and increased by 0.2% month-over-month, in line with expectations.
“And the government's personal consumption expenditures price index, otherwise known as the Fed's favorite gauge of inflation, is out.”
“And month over month, PCE increased by two-tenths of a percent, rebounding from a 0.1% decrease in the previous month, hotter than the estimate of a tenth of a percent.”
“Year over year, the PCE price index rose by to 3.7% in July, matching what happened in June when we saw a rise of 3.7%, a bit hotter than the 3.6% we were expecting.”
“Now, if you exclude volatile food and energy costs, core PCE month over month edging up 0.2% versus the 0.1% rise the prior month, and that's right in line with estimates, and the annual core rate holding steady at 3.3%, right in line with estimates”