PCE price index
Coverage of PCE price index in the Nexus archive.
- Inflation cooled to 3.7% in June — thanks to a ceasefire that didn't last
Inflation in the U.S. decreased to 3.7% in June as the PCE price index annual rate declined from 4.1% in May, primarily due to falling energy prices linked to a short-lived ceasefire in Iran.
- U.S. economy turns in sluggish 1.5% second-quarter growth and inflation remains above Fed target
The U.S. economy grew at a 1.5% annual rate in Q2 2026, below expectations and down from 2.1% in Q1. Inflation, as measured by the Fed's preferred PCE index, remained above the 2% target at 3.7% year-over-year in June 2026, though it slowed from 4.1% in May. The Federal Reserve held interest rates steady for the fifth consecutive meeting, despite dissent from three regional presidents advocating for higher rates.
- Inflation surges past 4% — but consumers keep spending
Inflation, as measured by the PCE price index, hit 4.1%, its highest level since 2023. Consumer spending remained stable despite the rise in inflation.
- Asian shares are mixed and US futures fall as Iran talks make progress
Asian stocks were mixed with Japan and South Korea rising amid AI-driven gains, while U.S. futures fell and oil prices dropped due to optimism over U.S.-Iran negotiations. Progress in talks reduced tension around the Strait of Hormuz, though risks of conflict remain. The U.S. PCE inflation data is set for release later this week.
- Core inflation hit an annual rate of 3.3% in April, as expected, Fed’s preferred gauge shows
Core inflation in April reached 3.3% annually, aligning with expectations, while the broader PCE price index showed 3.8% inflation for all items. The Federal Reserve's preferred inflation metric, the PCE index, confirmed these figures.