January inflation eases in Fed’s preferred measure
by Tobias Burns - 02/28/25 9:28 AM ET
Inflation in the Federal Reserve’s preferred price gauge eased in January after making steady increases throughout the fall.
The personal consumption expenditures (PCE) price index increased by 0.3 percent in January, easing to a 2.5-percent annual increase from 2.6 percent in December. The moves were in line with economists’ expectations.
“This is about the only inflation indicator this month where the Fed can find some refuge,” Olu Sonola, economist with Fitch Ratings, wrote in an analysis.
Concerns about resurgent inflation have been mounting after prices in both the PCE and the broader consumer price index (CPI) increased between September and December.
The PCE rose from a 2.1-percent annual increase to a 2.6 percent increase over that time while the CPI increased steadily from 2.4 percent to 2.9 percent. The CPI made an additional upward move in January to land at 3 percent.
Investors reacted to Friday’s easing in PCE prices with some caution.
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https://thehill.com/homenews/5168805-inflation-pce-price-eases/
