September 26, 2025
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PCE inflation edges up to 2.7% in August; core PCE steady at 2.9%

4d Developing 2 sources

Personal Consumption Expenditures inflation edged up to 2.7% year‑over‑year in August from 2.6% in July, while core PCE — the Fed’s preferred measure excluding food and energy — held steady at 2.9%. Month‑to‑month PCE rose 0.3% and core PCE 0.2%; the Commerce Department released the data as markets and the Fed watch ahead of the Oct. 28–29 FOMC meeting amid a recent Fed rate cut and continuing political pressure on Fed governance.

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📰 Sources (2)

Fed’s favored inflation gauge accelerated slightly in August, report shows
PBS News by Paul Wiseman, Associated Press September 26, 2025
New information:
  • Headline PCE rose 2.7% year-over-year in August 2025 (up from 2.6% in July).
  • Monthly change: PCE rose 0.3% from July; core PCE rose 0.2% from July.
  • Real consumer spending increased 0.4% month-over-month; personal incomes rose 0.4%; wages and salaries rose 0.3% (down from 0.5% prior).
  • Context: The Fed cut rates last week (first reduction this year) but remains cautious; the article also notes political pressure on Fed governance (President Trump’s criticisms and an attempted firing of Fed Governor Lisa Cook).
Core inflation held steady in August, in line with economists' expectations
https://www.facebook.com/CBSMoneyWatch/ September 26, 2025
New information:
  • Core PCE (Fed-preferred measure, excludes food and energy) rose 2.9% year-over-year in August, unchanged from July.
  • Headline PCE rose 2.7% year-over-year in August, up from 2.6% in July and the highest reading since February.
  • The Commerce Department released the August PCE data Friday; markets and the Fed are watching ahead of the Oct. 28–29 Federal Open Market Committee meeting.