US PCE Inflation - 2025-09-25

The tariff passthrough argument is a hard one to make this month. PCE core goods deflated in August at a 1.3% annual rate, and that's just where you ought to see it if it were there. For that matter, overall headline market-based PCE was only 2.5% in August at an annual rate, and core at 1.9%. Tariffs on the brain or not, this is just simply good news. No one wants a resurgence of inflation for any reason.