The US PCE price increased 0.4% month-over-month in April 2026, less than market expectations of 0.5%, following a 0.7% jump in March, which was the sharpest gain since June 2022. Goods prices increased 0.7% (vs 1.4% in March), while services inflation was steady at 0.3%. The core PCE index, which excludes food and energy, increased 0.2% after a 0.3% gain in March. On an annual basis, headline PCE inflation accelerated for a second straight month to 3.8% from 3.5% in March, reaching its highest level since May 2023 and aligning with headline CPI inflation. Core PCE inflation edged higher to 3.3% from 3.2%, marking its highest reading since late 2023.