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 0.3% from the previous month in May 2026, the same as an upwardly revised 0.3% in April and in line with market forecasts. From the previous year, the core PCE price index rose by an expected 3.4%, the highest since October 2023 and well above the Federal Reserve's 2% target.