# PCE Price Index Inches Up in September as Fed Holds Rates

> The Federal Reserve's preferred inflation gauge rose 0.5% in September, marking a slight increase after August's decline.

- Publisher: Briefzora (https://briefzora.com)
- URL: https://briefzora.com/pce-price-index-inches-up-in-september-as-fed-holds-rates
- Published: 2026-10-29T17:36:46+05:00
- Author: Briefzora Desk (https://briefzora.com/author/briefzora-desk)
- Section: Technology
- Image: https://briefzora.com/uploads/2026/10/federal-reserves-preferred-measure-of-inflation-rose-slightly-in-sept-j41cxg.webp

## Key points

- The PCE price index rose 0.5% in September, up from a decline in August.
- Year-over-year, the PCE index was 3.6% higher than in September 2025.
- Gas and energy prices jumped 9.2% from August to September.
- The Fed kept its policy rate range at 3.75%-4% after a 10-2 vote.
- Fed Chair Kevin Warsh said upcoming weeks will offer more clarity on policy.

## Why it matters

The slight rise in the Fed's key inflation measure influences monetary policy decisions that affect borrowers, savers and the broader economy.

## Article

Inflation ticked up in September following a dip in August, according to new figures from the Bureau of Economic Analysis released Thursday.

The personal consumption expenditures (PCE) price index, the Federal Reserve's favored inflation gauge, increased by 0.5 percent last month and was 3.6 percent higher than in September 2025.

The Federal Reserve Bank of Cleveland had forecast PCE inflation for the month at a 0.5 percent rise month-over-month and a 3.6 percent gain versus September 2025.

Annual PCE inflation had fallen from 3.7 percent in July to 3.4 percent in August.

Gas and other energy items posted a 9.2 percent jump from August to September, after a 4.4 percent rise from July to August.

Energy and gasoline prices have climbed in six of the nine months this year, a trend linked to the Iran war and the Islamic Republic's limits on shipping in the Strait of Hormuz.

Persistent inflation, staying above the Fed's 2 percent target for five-and-a-half years, led officials to raise interest rates by a quarter point in mid-September.

Nevertheless, the Federal Open Market Committee voted 10-2 on Wednesday to keep rates in the 3.75 percent to 4 percent band.

Following the vote, Fed Chair Kevin Warsh said the weeks before the next FOMC meeting in early December will "provide more clarity" on the "appropriate protocol" for monetary policy.

"What we've done in this monetary medicine, it's starting to work some, but there's no firm conclusions," Warsh said, referring to the September rate hike. "If we had a firm conclusion about the conduct of monetary policy, we'd announce it to much fanfare today."

## Frequently asked questions

### What was the month-over-month change in the PCE price index for September?

The PCE price index increased by 0.5 percent in September.

### How did the Federal Open Market Committee vote on rates in September?

The FOMC voted 10-2 to hold rates in the 3.75 percent to 4 percent range.


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