
CBO Projects Gradual Slowdown in PCE Inflation for 2026
CBO published a long-term budget and economic report predicting a gradual slowdown of PCE inflation throughout 2026 as the effects of trade tariffs weaken.
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CBO published a long-term budget and economic report predicting a gradual slowdown of PCE inflation throughout 2026 as the effects of trade tariffs weaken.

Annual CPI inflation dropped from 3.5 percent in the prior month to 3.4 percent, hitting a local low for the period.

Annual CPI inflation held at 3.4 percent, but the monthly index surged by 0.4 percent largely due to a 3.9 percent increase in gasoline prices.

Household short-term inflation expectations rose to 3.9 percent, though labor market and income expectations also improved.

Total consumer spending increased by 6.2 percent year-over-year, driven by an early start to winter holiday preparations.