U.S. PCE Inflation Tops Forecasts at 3.7% as July Prices Rise 0.2%
Updated
Updated · Fox Business · Aug 26
U.S. PCE Inflation Tops Forecasts at 3.7% as July Prices Rise 0.2%
3 articles · Updated · Fox Business · Aug 26
Summary
July PCE prices rose 0.2% from June and 3.7% from a year earlier, both above LSEG forecasts of 0.1% and 3.6%.
Core PCE, the Fed’s preferred underlying measure, increased 0.2% on the month and held at 3.3% annually, matching expectations but still well above the 2% target.
Services prices climbed 0.3% in July and 2.5% from a year earlier, while goods prices fell 0.6% on the month but were still up 1.3% annually.
The personal savings rate rose to 3.0% from 2.6% in June, though it remained below 4.4% at the start of 2026 and far under the 5.5% peak in April 2025.
The hotter-than-expected report keeps pressure on Federal Reserve policymakers as elevated inflation continues to shape consumer spending and rate expectations.