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Inflation dropped to 5% in February, according to key gauge watched by Fed

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mystery-ak:
Inflation dropped to 5% in February, according to key gauge watched by Fed
by Zachary Halaschak, Economics Reporter |
March 31, 2023 08:33 AM

Inflation fell to a 5% annual rate in February, as measured by the gauge favored by the Federal Reserve.

The decline in the personal consumption expenditures price index reported Friday morning by the Bureau of Economic Analysis shows that inflationary pressures are abating in the face of the Fed’s campaign to slow economywide spending by hiking interest rates.

Nevertheless, inflation is still running much hotter than the central bank’s target and dinging household purchasing power.

Core PCE inflation, a measure of inflation that strips out energy and food prices and is generally less volatile, is clocking in at a 4.5% year-over-year rate.

The Fed's target for inflation is 2%.

more
https://www.washingtonexaminer.com/policy/economy/inflation-dropped-to-5-in-february-according-to-key-gauge-watched-by-fed

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