The US core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of underlying inflation, rose 0.3% month over month in September 2026, matching both August’s increase and market expectations. On an annual basis, core PCE inflation accelerated to 3.1% from 3.0% in August, in line with forecasts and marking its highest level since May. The reading remains well above the Fed’s 2% target, reinforcing concerns that rising energy costs could be contributing to broader inflationary pressures.