AI Data Insight
The US seasonally adjusted PCE Goods Price Index for May 2026 (Q2) declined from 120.331 in the previous month to 119.57, a month-over-month decrease of approximately 0.63%, indicating a significant cooling of inflation pressure on the goods side. Although external data showed the overall PCE year-over-year growth rate for the same period was pushed up to 4.1% by energy, authoritative data confirms that core goods prices have taken the lead in reversing and pulling back. Looking ahead, as energy prices stabilize and supply chains normalize, the trend of goods deflation is expected to continue, though services inflation remains the biggest variable for interest rate cuts.