Annual PCE Hits 3.1% for First Time in Nearly Two Years

The Fed’s preferred inflation gauge just hit a nearly two-year high. Core PCE climbed to 3.1% in January, erasing much of the progress made since the index last peaked in March 2024. November and December price levels were also revised up slightly.

The Fed's Favorite Measure Of Inflation Stayed Hot In January

Inflation in January, as measured by the Personal Consumption Expenditures index, was close to forecasters' expectations. Inflation rose 2.8% over the year and the "core" measure excluding food and energy rose 3.

CPI report shows inflation cooled in January, with prices rising at a 2.4% annual pace

The CPI was expected to rise 2.5% on an annual basis last month, according to economists polled by financial data firm FactSet. The January CPI represents the slowest pace of inflation since May 2025 and is down from December's 2.7% annual rate.

February inflation was unchanged but predates surge in energy prices

Inflation in February was flat compared with January but doesn’t include the surge in oil prices pushing up consumer costs.
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US annual PCE inflation edges lower to 2.8% in January

Annual core PCE inflation rose to 3.1% in January as expected. USD Index clings to daily gains near 100.00. As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank ...