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Core PCE Inflation: the latest available reading.

3.34% +0.00 vs prior month July 2026 · updated monthly

Core PCE inflation is running at 3.34% year-over-year, having ticked up slightly from the prior month and well above the Federal Reserve's 2% target. This represents a deteriorating trend after a brief dip earlier in the year, with prices for goods and services excluding volatile food and energy now rising at nearly double the Fed's comfort zone.

The trend since 2019.

The latest available read: Core PCE Inflation is at 3.34% as of July 2026. Source: FRED · PCEPILFE.

Why it matters.

This number directly affects your purchasing power and the Fed's decisions on interest rates, which influence your mortgage, auto loan, and savings account returns. Persistent inflation above target makes the central bank more likely to keep rates elevated, which can slow wage growth and job creation while making borrowing more expensive.

Where it fits.

Core PCE Inflation feeds the Inflation & the Fed view — one of the six areas behind the site's Macro IQ score.