# U.S. Core PCE Inflation Rises 3.1% as December Fed Hike Risk Draws Focus

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/43524
Published: 2026-10-29T12:53:53.000Z
Updated: 2026-10-29T12:53:53.000Z
Section: Investing

> Overall PCE inflation rose 3.6% year over year, while markets are watching whether service prices climb further.

Elevated U.S. inflation in September kept a possible December Federal Reserve rate increase in market focus, with core personal consumption expenditures (PCE) prices rising 3.1% from a year earlier.

The overall PCE price index increased 3.6% year over year. The headline measure includes food and energy, while the core reading removes both, leaving separate views of broad and underlying price growth. Both figures track changes over a 12-month period, not a single month.

Rising energy prices drove the headline rebound as international oil prices climbed amid Middle East conflict. Markets are also watching whether businesses pass higher fuel costs on to consumers.

Core PCE is the Fed's most closely watched inflation gauge. Its services component reflects whether domestic price pressures are persisting, keeping that category central to market expectations.

If service prices rise further, markets could put greater odds on a 25-basis-point increase at the Fed's December policy meeting.