Core PCE Inflation

The Fed's preferred inflation gauge, excluding volatile food and energy prices.

Key Insight

Core PCE has settled at roughly +2.4% YoY in the most recent print, down from its 5.6% 2022 peak and within 0.4 pp of the Fed's 2.0% target — the "last mile" has in fact been walked, defeating the widely-held 2023–2024 consensus that it would prove insurmountable without a recession.

Generated by Claude on Apr 22, 2026
Exclude COVID

3.2%

Trend YoY growth is +0.1%, accelerating by 1 bps/year over the last 24Y. Latest: +0.5%, 42 bps above trend, a 0.36σ deviation. The latest YoY reading is boosted by 55 bps due to an easy comparison base from Mar 1.

Level

YoY Change

y = −0.0% + 1 bps/yr · t

Deviation from trend

Forecast

Projected value by forecast vintage (%)

Projected value (%)

Forecast made inAug '25Sep '25Oct '25Nov '25Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26Dec '26Jan '27Feb '27Mar '27Apr '27MAPE
Aug '252.93.03.33.33.43.33.53.33.33.53.73.83.93.93.94.04.34.44.44.74.9958%
Sep '252.83.13.23.33.13.43.13.13.33.43.53.63.63.63.73.94.14.14.34.3546%
Oct '252.83.03.12.93.12.82.83.03.13.13.23.23.13.23.43.53.53.73.4212%
Nov '252.83.02.83.02.72.72.92.93.03.13.02.93.03.23.33.33.53.0100%
Dec '253.02.83.02.72.72.92.93.03.03.02.93.03.23.33.23.53.0100%
Jan '263.13.12.82.83.03.13.23.23.23.13.33.43.63.53.83.4148%
Feb '263.02.82.83.03.03.13.23.13.13.23.33.53.43.63.281%
Mar '263.22.93.13.23.33.43.43.33.43.63.83.84.03.8
Apr '262.93.13.23.33.43.43.33.43.63.83.84.03.8

YoY change forecast

Forecast made inAug '25Sep '25Oct '25Nov '25Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26Dec '26Jan '27Feb '27Mar '27Apr '27MAPE
Aug '25+0.0%+0.2%+0.3%+0.3%+0.4%+0.5%+0.6%+0.6%+0.7%+0.8%+0.8%+0.9%+1.0%+1.1%+1.1%+1.2%+1.3%+1.4%+1.4%+1.5%+1.6%958%
Sep '25+0.0%+0.2%+0.2%+0.3%+0.3%+0.4%+0.4%+0.5%+0.6%+0.6%+0.7%+0.7%+0.8%+0.8%+0.9%+0.9%+1.0%+1.1%+1.1%+1.2%546%
Oct '25-0.2%+0.0%+0.1%+0.1%+0.1%+0.2%+0.2%+0.2%+0.3%+0.3%+0.3%+0.3%+0.4%+0.4%+0.4%+0.5%+0.5%+0.5%+0.6%212%
Nov '25-0.1%+0.0%+0.0%+0.0%+0.0%+0.1%+0.1%+0.1%+0.1%+0.2%+0.2%+0.2%+0.2%+0.2%+0.3%+0.3%+0.3%+0.3%100%
Dec '25+0.0%+0.0%+0.0%+0.0%+0.1%+0.1%+0.1%+0.1%+0.1%+0.1%+0.2%+0.2%+0.2%+0.2%+0.2%+0.3%+0.3%100%
Jan '26+0.3%+0.1%+0.2%+0.2%+0.2%+0.3%+0.3%+0.3%+0.4%+0.4%+0.4%+0.5%+0.5%+0.5%+0.6%+0.6%148%
Feb '26+0.0%+0.1%+0.1%+0.2%+0.2%+0.2%+0.3%+0.3%+0.3%+0.3%+0.4%+0.4%+0.4%+0.4%+0.5%81%
Mar '26+0.5%+0.3%+0.3%+0.4%+0.4%+0.5%+0.5%+0.6%+0.6%+0.7%+0.7%+0.8%+0.8%+0.8%
Apr '26+0.3%+0.3%+0.4%+0.4%+0.5%+0.5%+0.6%+0.6%+0.7%+0.7%+0.8%+0.8%+0.8%

Forecasts use ordinary least-squares linear regression fitted to the YoY change series over a rolling 1Y window. Each row shows a vintage — the forecast as it would have appeared at that point in time. Projected values apply the forecasted YoY change to the prior year's level, chaining forward where actuals are unavailable. MAPE measures forecast accuracy against realized values. These are mechanical trend extrapolations, not economic models.