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GovPCE inflationWed, Sep 30 · 8:30 AM ET

PCE prices rose 3.4% over 12 months in August, unchanged from July

Core PCE inflation, the Fed's preferred gauge, also held at 3.0% in August, while core prices rose 0.2% from July.

Macro Bullseye · · Updated

The Bureau of Economic Analysis reported that PCE prices rose 3.4% over the 12 months ending in August. That matched the pace in July. A year earlier, in August 2025, the rate was 2.7%.

The numbers

Aug 2026 data · released Wed, Sep 30

PCE prices, change over 12 months
3.4%Jul 2026: 3.4%
Core PCE prices, change over 12 months
3.0%Jul 2026: 3.0%
Core PCE prices, change from the prior month
+0.2%Jul 2026: +0.1%
PCE prices, change over 12 months, last 24 months

View the data as a table
PCE prices, change over 12 months, last 24 months
PeriodValue
Aug 20263.4%
Jul 20263.4%
Jun 20263.5%
May 20263.8%
Apr 20263.6%
Mar 20263.4%
Feb 20262.8%
Jan 20262.7%
Dec 20252.8%
Nov 20252.7%
Oct 20252.7%
Sep 20252.8%
Aug 20252.7%
Jul 20252.6%
Jun 20252.6%
May 20252.5%
Apr 20252.3%
Mar 20252.3%
Feb 20252.6%
Jan 20252.6%
Dec 20242.6%
Nov 20242.5%
Oct 20242.4%
Sep 20242.3%

Source: Bureau of Economic Analysis, via FRED (Federal Reserve Bank of St. Louis). Revised figures replace earlier ones.Full release

Core PCE prices, which leave out food and energy, also rose 3.0% over 12 months in August, unchanged from July. In August 2025 the core rate was 2.9%. From July to August, core prices rose 0.2%, after a 0.1% increase in July. Core prices also rose 0.2% in August 2025.

The headline rate stayed between 2.7% and 2.8% from August 2025 through February 2026. It jumped to 3.4% in March and kept climbing to 3.6% in April and 3.8% in May. It then eased to 3.5% in June and 3.4% in July, and held there in August.

The next report, covering September, is due Thursday, October 29, 2026, at 8:30 AM ET.

What it means for your money

  • Core PCE inflation is the number the Fed watches most closely. At 3.0%, it remains above the Fed's 2% target, and inflation above target tends to keep interest rates higher for longer.
  • Prices rising 3.4% over a year means everyday costs are higher than they were in August 2025. Savings and loan rates tend to stay elevated while inflation remains well above the Fed's goal.
  • Paychecks and savings returns lose buying power when inflation runs above the growth in what they earn.

Drafted by AI (Claude) from the official data and published only after an automatic check that every number in the text matches the figures above. Not investment advice. How we write these