May 2026 | Released June 25, 2026


+4.07 percent
PCE price index inflation
May 2025 to May 2026
+0.26 percent
Change in real PCE
Apr 2026 to May 2026
+0.68 percent
Change in personal income
Apr 2026 to May 2026


Expenditures and inflation


From April 2026 to May 2026:

  • Headline PCE price index inflation was 0.45 percent.
  • Core PCE price index inflation was 0.32 percent. This excludes food and energy prices, which tend to be more volatile.
  • All services inflation was 0.45 percent.
  • All goods inflation was 0.44 percent.
    • Durable goods inflation was -0.02 percent.
    • Nondurable goods inflation was 0.68 percent.


  • Real personal consumption expenditures (PCE) increased by 0.26 percent, or $43.82 billion.
  • Real PCE on all services increased by 0.17 percent, or $18.98 billion.
  • Real PCE on all goods increased by 0.46 percent, or $26.28 billion.
    • Real PCE on durable goods increased by 0.85 percent, or $18.27 billion.
    • Real PCE on nondurable goods increased by 0.26 percent, or $9.15 billion.


  • The nominal personal savings rate remained unchanged with a net change of 0 percentage points to 3 percent.


From May 2025 to May 2026:

  • Headline PCE price index inflation was 4.07 percent, which is higher than the Federal Reserve’s target of 2 percent.
  • Core PCE price index inflation was 3.41 percent.



Income and savings


From April 2026 to May 2026:



Table 1. Income and Consumption Indicators

May 2026 Apr 2026 Chg. from Apr 2026
Income and outlays growth (m/m)
Real Disposable Personal Income 0.25% -0.51% +0.76pp
Real Personal Consumption Expenditures 0.26% 0.00% +0.26pp
Month-over-month PCE inflation
Headline 0.45% 0.41% +0.04pp
Core 0.32% 0.25% +0.07pp
Year-over-year PCE inflation
Headline 4.07% 3.80% +0.27pp
Core 3.41% 3.32% +0.09pp


Table 2. Cleveland Federal Reserve Forecast

Cleveland Fed forecast Actual Forecast error
Month-over-month PCE inflation
Headline 0.38% 0.45% -0.07pp
Core 0.24% 0.32% -0.08pp
Year-over-year PCE inflation
Headline 3.97% 4.07% -0.10pp
Core 3.30% 3.41% -0.11pp


Table 3. Personal Consumption Expenditures by category

Expenditure category May 2026 Apr 2026 Chg. from Apr 2026 May 2025 Chg. from May 2025
Housing and utilities $3,950.3B
(17.91%) 		$3,928.0B
(17.93%) 		+0.57%
(-0.03pp) 		$3,782.9B
(18.23%) 		+4.42%
(-0.32pp)
Health care $3,716.0B
(16.85%) 		$3,693.7B
(16.86%) 		+0.60%
(-0.02pp) 		$3,512.1B
(16.92%) 		+5.81%
(-0.08pp)
Financial services and insurance $1,830.9B
(8.30%) 		$1,802.5B
(8.23%) 		+1.57%
(+0.07pp) 		$1,650.6B
(7.95%) 		+10.92%
(+0.35pp)
Food and beverages purchased for off-premises consumption $1,566.8B
(7.10%) 		$1,562.2B
(7.13%) 		+0.29%
(-0.03pp) 		$1,518.3B
(7.32%) 		+3.19%
(-0.21pp)
Food services and accommodations $1,538.3B
(6.97%) 		$1,537.9B
(7.02%) 		+0.03%
(-0.05pp) 		$1,491.3B
(7.19%) 		+3.15%
(-0.21pp)
Recreational goods and vehicles $760.7B
(3.45%) 		$753.7B
(3.44%) 		+0.93%
(+0.01pp) 		$690.0B
(3.32%) 		+10.24%
(+0.12pp)
Motor vehicles and parts $759.5B
(3.44%) 		$754.2B
(3.44%) 		+0.71%
(-0.00pp) 		$753.7B
(3.63%) 		+0.77%
(-0.19pp)
Pharmaceutical and other medical products $750.5B
(3.40%) 		$746.0B
(3.41%) 		+0.60%
(-0.00pp) 		$721.0B
(3.47%) 		+4.09%
(-0.07pp)
Transportation services $747.0B
(3.39%) 		$743.6B
(3.39%) 		+0.47%
(-0.01pp) 		$700.0B
(3.37%) 		+6.72%
(+0.01pp)
Clothing and footwear $595.3B
(2.70%) 		$592.4B
(2.70%) 		+0.48%
(-0.01pp) 		$555.7B
(2.68%) 		+7.13%
(+0.02pp)
Gasoline and other energy goods $552.8B
(2.51%) 		$531.8B
(2.43%) 		+3.96%
(+0.08pp) 		$401.6B
(1.94%) 		+37.65%
(+0.57pp)
Furnishings and durable household equipment $531.6B
(2.41%) 		$527.5B
(2.41%) 		+0.77%
(+0.00pp) 		$505.4B
(2.44%) 		+5.18%
(-0.03pp)
Education services $369.2B
(1.67%) 		$369.7B
(1.69%) 		-0.15%
(-0.01pp) 		$362.2B
(1.74%) 		+1.93%
(-0.07pp)
Communication $333.7B
(1.51%) 		$327.3B
(1.49%) 		+1.95%
(+0.02pp) 		$319.9B
(1.54%) 		+4.30%
(-0.03pp)
All other expenditures $4,057.2B
(18.39%) 		$4,033.3B
(18.41%) 		+0.59%
(-0.02pp) 		$3,790.1B
(18.26%) 		+7.05%
(+0.13pp)

Note: Each month column shows the nominal dollar amount at a seasonally adjusted annual rate (SAAR) for each expenditure category and its share of total expenditure in parentheses. In the gray “change” columns, the percent value indicates the change in the annualized dollar amount over the period, and the percentage-point value in parentheses indicates the change in that category’s share of total expenditure over the period.


Upcoming releases


Date Time Release Data source
Jul 02 08:30 AM Monthly Employment Update, June 2026 Bureau of Labor Statistics
Jul 07 08:30 AM Monthly Trade Update, May 2026 Bureau of Economic Analysis
Jul 08 10:00 AM Monthly Debt Update, July 2026 U.S. Treasury
Jul 14 08:30 AM Monthly Inflation Update, June 2026 Bureau of Labor Statistics
Jul 14 10:00 AM Monthly Fiscal Update, June 2026 U.S. Treasury
Jul 21 10:00 AM State Employment and Unemployment, June 2026 Bureau of Labor Statistics


Notes


Source: Bureau of Economic Analysis; JEC Republicans calculations

“pp” = percentage points; “M/M” = month over month; “Y/Y” = year over year

Consistent with the Bureau of Economic Analysis, monthly figures are seasonally adjusted. Discrepancy in change figures is possible due to rounding.