The personal consumption expenditures (PCE) index, which is the Federal Reserve's preferred measure of inflation, showed persistent price growth in April 2026. According to the Commerce Department, the PCE index increased by 0.4% on a monthly basis and is up 3.8% compared to the same month last year. These monthly figures were slightly lower than the 0.5% rise anticipated by economists surveyed by LSEG, while the annual increase aligned with expectations. Core PCE, which excludes the often volatile food and energy prices, saw a monthly increase of 0.2% and an annual rise of 3.3%, both figures reflecting a slightly cooler trend than predicted. The Federal Reserve is closely monitoring the PCE index as it strives to bring inflation back to its long-term target of 2%. Compared to the previous month, the headline PCE increased from 3.5% to 3.8%, while core PCE rose from 3.2% to 3.3%.