Core Inflation Measure Shows Prices Rising At Fastest Pace In A Year

[mystery-ak]

Core Inflation Measure Shows Prices Rising At Fastest Pace In A Year

John Carney 29 Feb 2024

The pace of price hikes faced by American households accelerated in January to its fastest in a year, challenging the notion that high inflation is receding.

The personal consumption expenditure price index, known as the PCE price index, rose 0.3 percent in January.

Compared with 12 months ago, the index is up 2.4 percent, lower than the 12 month increase of 2.6 percent recorded in December. Year over year measures of inflation have been falling as the very high figures from the end of 2022 and start of 2023 drop out of the calculation.

The core PCE price index, which excludes food and energy prices, rose 04 percent. That’s four times the downwardly revised 0.1 percent increase for the prior month. Over the past 12 months, the core index is up 2.8 percent, a tick down from the 2.9 percent 12 month gain recorded in December.

That’s the largest monthly increase in core PCE inflation since January of last year.

more
https://www.breitbart.com/economy/2024/02/29/core-inflation-measure-shows-prices-rising-at-fastest-pace-in-a-year/

[mystery-ak]

Inflation fell to 2.4% in January in gauge favored by Fed, but core prices rose quickly
By
Joseph Lawler
February 29, 2024 8:32 am

Inflation fell two-tenths of a percentage point to a 2.4% rate for the year ending in January, the Bureau of Economic Analysis reported Thursday in an update to the personal consumption expenditures index, the lowest such rate since February 2021, just after President Joe Biden took office.

The drop in headline inflation is welcome news for both Biden and the Federal Reserve, which has been seeking additional evidence that its campaign to lower inflation is working. The Fed’s target is 2% inflation in the PCE index.

Some of the report’s details, though, were less favorable.

Most notably, core inflation, which strips out the volatile categories of food and inflation, fell only a tenth of a percentage point to 2.8% for the year. Core inflation was 0.4% just in the month of January, the fast such rate in a year, and well above the pace consistent with the Fed’s target.

more
https://www.washingtonexaminer.com/policy/economy/2894424/inflation-fell-to-2-4-in-january-in-gauge-favored-by-fed/

[catfish1957]

Inflation fell to 2.4% in January in gauge favored by Fed, but core prices rose quickly
By
Joseph Lawler
February 29, 2024 8:32 am

Inflation fell two-tenths of a percentage point to a 2.4% rate for the year ending in January, the Bureau of Economic Analysis reported Thursday in an update to the personal consumption expenditures index, the lowest such rate since February 2021, just after President Joe Biden took office.