US core inflation exceeds expectations as prices heat up
Underlying US inflation rose more than expected in December as prices accelerated. This trend likely delays potential Federal Reserve rate cuts until June.
Underlying inflation in the US 
US rose more than expected in December, according to data released today, February 20, 2026. The core personal consumption expenditures (PCE) price index, which excludes volatile food and energy costs, increased by 0.4 percent on a month-on-month basis and 3.0 percent compared to the previous year. This stronger-than-anticipated reading has significantly bolstered expectations among market participants and policymakers that the Federal Reserve will refrain from cutting interest rates until at least June.
US rose more than expected in December, according to data released today, February 20, 2026. The core personal consumption expenditures (PCE) price index, which excludes volatile food and energy costs, increased by 0.4 percent on a month-on-month basis and 3.0 percent compared to the previous year. This stronger-than-anticipated reading has significantly bolstered expectations among market participants and policymakers that the Federal Reserve will refrain from cutting interest rates until at least June.
