August US PCE Prices Rise as Expected; Income, Spending Both Increase

08:42 AM EDT, 09/30/2026 (MT Newswires) -- Personal income rose by 0.2% in August following July's 0.3% gain, smaller than the expected 0.5% gain in a survey conducted by Bloomberg as of 7:40 am ET. Personal consumption expenditures were up 0.9%, as expected, and followed a 0.1% gain in the previous month. After adjustment for inflation, real PCE increased by 0.6% after a 0.1% increase in July, compared with expectations for a 0.5% increase. The PCE price index increased by 0.3%, as expected, keeping the year-over-year rate at 3.4%. The price index increased by 0.1% month-over-month in July. The core PCE price index increased by 0.2%, below the 0.3% gain expected and following a 0.1% gain in July. The year-over-year remained at 3.0%. The monthly report on personal income and spending is released by the Bureau of Economic Analysis about one month after the period it is measuring. Personal income is broken down into various categories, with wages making up the largest portion. Spending is reported in two ways-before and after adjustment for inflation movements. The price measures in the report are closely watched by the Federal Reserve, particularly the year-over-year. Faster consumption growth is usually a positive for stocks but combined with soft income readings could suggest consumers are overextending. Bonds are sensitive to the price measures if the pace is above the Federal Reserve's 2% target.