PCE inflation in January was 2.8% year over year. The numbers predate the Iran conflict.

The Commerce Department on Friday released the January 2026 PCE inflation report, which showed the Federal Reserve's preferred inflation gauge remained stubbornly high for consumers.

The consumer price index was rose 2.4% in February 2026, above policymakers' target, economists said. War in Iran complicates the picture.

Workers are staying put because it has become much harder to find a new job, and that low-hire environment is likely to keep wage growth under pressure just as inflation begins to rise again. That matters because households are now being squeezed from both sides.

The Federal Reserve’s favored inflation gauge was worse than what Wall Street forecast in January, according to federal data released Friday, as the Iran war—boosting energy prices and fears of rising inflation—has shelved hopes of an interest rate cut from the central bank.

The PCE price index for January was expected to show headline inflation at 2.9% and core at 3.1%.

Inflation held steady in February, though prices for goods like beef and coffee saw notable increases while prices for eggs and smartphones declined compared with last year.

Oil prices are retesting $100 a barrel, but inflation expectations have barely nudged, a warning sign for markets, Albert Edwards says.

Brazil’s annual inflation eased slightly less than expected in February, days before the central bank is expected to kick off monetary easing.

Inflation stayed stubbornly elevated last month as gas prices rose in a snapshot of what consumer prices looked like before the U.S.-Israeli attack on Iran sent energy costs soaring.