April Inflation Data Shows Persistent Price Growth, Fed's Focus on PCE Index
Fed's favored inflation gauge remained elevated in April

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In April 2026, the Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) index, rose 0.4% monthly and 3.8% annually, indicating ongoing price pressures. Core PCE, which excludes food and energy, increased by 0.2% month-over-month and 3.3% year-over-year.
- 01The PCE index rose by 0.4% in April 2026, slightly below the expected 0.5%.
- 02Year-over-year, the PCE index increased by 3.8%, matching economists' forecasts.
- 03Core PCE, excluding food and energy, rose 0.2% from the previous month.
- 04The annual increase for core PCE was 3.3%, consistent with expectations.
- 05Federal Reserve aims to reduce inflation to a long-term target of 2%.
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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%.
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Consumers continue to face rising prices, which could affect spending and economic growth.
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