The core PCE price index in the US, which is the Federal Reserve's preferred gauge of underlying inflation in the US economy, rose by 0.4% from the previous month in January of 2026, the same pace as the 10-month high from the previous month. The rise was in line with market expectations. From the previous year, the core PCE price index rose by 3.1%, the highest in nearly two years, picking up from the 3% in the previous month and remaining sharply above the Federal Reserve's 2% target.