U.S. PCE Inflation Rises to 3.6% in September, Matching Forecasts

U.S. personal consumption expenditures (PCE) inflation rose to 3.6% year over year in September, up from 3.4% and matching expectations, keeping a key Federal Reserve gauge in focus for markets.

The annual rate was 0.2 percentage point higher than the prior reading. It also matched expectations, meaning the September figure aligned with the anticipated level despite the increase from 3.4%.

Those are separate comparisons: the year-over-year rate rose from the previous reading, while the latest result matched the forecast. The September update showed higher annual inflation than the prior figure, without an upside or downside surprise against expectations.

PCE is a key inflation gauge for the Federal Reserve, and the rate remains on the market’s radar. For readers tracking U.S. inflation, the reported numbers are 3.6% year over year in September and 3.4% in the prior reading. Taken together, they place the September measure above its previous level and at the expected mark.