A man selects clothes at a supermarket in New York, the United States, Aug. 26, 2026. The U.S. Federal Reserve's preferred inflation gauge came in slightly above expectations, with the annual inflation rate holding steady at 3.7 percent, data released by the Commerce Department showed on Wednesday. (Xinhua/Zhang Fengguo)
NEW YORK, Aug. 26 (Xinhua) -- The U.S. Federal Reserve's preferred inflation gauge came in slightly above expectations, with the annual inflation rate holding steady at 3.7 percent, data released by the Commerce Department showed on Wednesday.
The personal consumption expenditures (PCE) price index increased by a seasonally adjusted 0.2 percent for the month, slightly exceeding expectations, while core PCE inflation, which excludes volatile food and energy prices, matched forecasts with a 0.2 percent monthly increase and a 3.3 percent year-over-year rise.
The Commerce Department report also revealed that personal income rose by 0.4 percent, while consumer spending increased by a modest 0.2 percent. Upward pressure on prices was notably visible in the services sector, where prices rose 0.3 percent.
Following the data release, U.S. stock market futures pulled back slightly, while Treasury yields moved higher. The prolonged period of rising costs continues to weigh heavily on the public mood. Highlighting the ongoing economic strain, local media outlet WPXI-TV noted that "Americans remain frustrated with the economy after five years of elevated inflation."
The latest inflation reading arrives as Federal Reserve officials weigh their next monetary policy move. Despite experiencing generally softer monthly inflation readings throughout the summer, overall inflation remains stubbornly above the central bank's long-stated 2-percent target. ■
Customers select health supplements at a supermarket in New York, the United States, Aug. 26, 2026. The U.S. Federal Reserve's preferred inflation gauge came in slightly above expectations, with the annual inflation rate holding steady at 3.7 percent, data released by the Commerce Department showed on Wednesday. (Xinhua/Zhang Fengguo)
Customers shop at a supermarket in New York, the United States, Aug. 26, 2026. The U.S. Federal Reserve's preferred inflation gauge came in slightly above expectations, with the annual inflation rate holding steady at 3.7 percent, data released by the Commerce Department showed on Wednesday. (Xinhua/Zhang Fengguo)
A shop assistant helps arrange goods at the cashier of a supermarket in New York, the United States, Aug. 26, 2026. The U.S. Federal Reserve's preferred inflation gauge came in slightly above expectations, with the annual inflation rate holding steady at 3.7 percent, data released by the Commerce Department showed on Wednesday. (Xinhua/Zhang Fengguo)