The US PCE price index rose 0.5% month-over-month in September 2026, the most in six months, following a 0.3% increase in August and in line with market expectations. Goods prices rose 0.8%, up from 0.3% in August, led by a 1.1% rise in nondurable goods, mainly due to a 9.2% jump in gasoline and other energy goods prices. Durable goods inflation, meanwhile, picked up to 0.2% from 0.1%. Services inflation was unchanged at 0.3%, driven mainly by higher transportation services (2.1%). The core PCE price index, excluding food and energy, increased 0.3%, the most in four months and also in line with forecasts. Year-on-year, headline PCE inflation accelerated to 3.6% from 3.4% in the previous month, while core inflation picked up to 3.1% from 3%. The personal consumption expenditures price index is the primary inflation gauge for the Fed and has been above the 2% target since 2021.