Developing Coverage on February 2026 PCE Inflation
This story about the February 2026 PCE inflation is developing and will be updated with more details as they emerge. The Federal Reserve's preferred inflation gauge remained stubbornly high in February as consumers continued to face elevated price growth. Despite ongoing efforts to tame inflation, the latest data underscores the persistence of price pressures in the economy.
Headline PCE Index Results
The Commerce Department reported on Thursday that the personal consumption expenditures (PCE) index rose 0.4% on a monthly basis in February and is up 2.8% from a year ago. Both figures were in line with the expectations of economists polled by LSEG. This monthly uptick reflects sustained demand and supply chain dynamics that have kept inflation from cooling as rapidly as hoped.
Core PCE Measures
Core PCE, which strips out volatile food and energy prices, increased 0.4% from a month ago and rose 3% year over year. These numbers also aligned precisely with economist forecasts from the LSEG poll. The core reading provides a clearer view of underlying inflationary trends, excluding short-term fluctuations that can distort headline figures.
Federal Reserve's Focus on PCE Data
Federal Reserve policymakers are centering their attention on the PCE headline figure as they work to guide inflation back to their long-run target of 2%, although they regard core data as a superior indicator of persistent inflation. The elevated readings signal that rate cuts may remain on hold longer than some market participants anticipated, maintaining a cautious stance on monetary policy adjustments.
