This story about the August 2026 PCE inflation report will be updated with further details.

The Federal Reserve’s preferred inflation gauge remained elevated well above target in August as consumers continued to face price pressures.

The Commerce Department on Wednesday reported that the personal consumption expenditures (PCE) index rose 0.3% on a monthly basis in August and was up 3.4% from a year ago. Both figures were cooler than the expectations of economists polled by LSEG, who predicted 0.4% and 3.7%, respectively.

Core PCE, which excludes volatile measurements of food and energy prices, was up 0.2% on a monthly basis and 3% year over year. Both figures were cooler than economists’ expectations of 0.3% and 3.3%, respectively.