Today’s Lead Story
Thursday, August 27Inflation
Fed's Preferred Inflation Gauge Shows Core Prices Still Running Hot at 3.3%
via Bureau of Economic Analysis
The BEA's July 2026 personal income and outlays report, released August 26, shows the core PCE price index rising 3.3% year-over-year — still well above the Fed's 2% target. Consumer spending grew just 0.2% while income gained 0.4%, with services costs continuing to climb even as goods prices eased.
Why it matters
Sticky services inflation means everyday costs like rent, insurance, and childcare are likely to keep rising, keeping household budgets squeezed for months ahead.
