US PCE Inflation Rises Less Than Expected in August; Q2 GDP Growth Revised Up to 2.2 Percent

The US Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose less than markets expected in August 2026. According to data released Wednesday, September 30, 2026 (8 Mehr 1405), prices rose 3.4 percent year on year, versus an economist forecast of 3.7 percent, and 0.3 percent month on month, below the 0.4 percent expected.

Core PCE inflation, which excludes food and energy, rose 3 percent year on year and 0.2 percent month on month, also below forecasts of 3.3 and 0.3 percent respectively. Separately, the final estimate of US second quarter 2026 GDP growth was revised up to an annualized 2.2 percent, from a prior estimate of 1.5 percent. The data could influence market expectations for the Federal Reserve's next interest rate decision.