United States PCE Price Index Monthly Change

The US Personal Consumption Expenditures (PCE) price index rose by 0.1% month-over-month in May 2025, the same as in April and in line with expectations. Prices for goods were up 0.1%, the same as in April and prices for services rose 0.2%, above 0.1% in the previous month. The core PCE index, which excludes volatile food and energy prices, rose 0.2%, above 0.1% in the previous two months and forecasts of 0.1%. Separately, prices for food increased 0.2%, after a 0.3% fall in April while prices for energy goods and services dropped 1% after a 0.5% gain in April. On a year-over-year basis, headline PCE inflation accelerated to 2.3% from an upwardly revised 2.2% and matching forecasts. Similarly, core PCE inflation edged up to 2.7% from an upwardly revised 2.6%, and above expectations of 2.6%. The PCE index is the Federal Reserve’s preferred gauge of inflation.