The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) index, rose 0.3% in February and 2.5% year-over-year, aligning with economists’ expectations. Core PCE, which excludes food and energy prices, increased slightly more than anticipated at 0.4% for the month and 2.8% annually.
While goods prices saw a modest rise of 0.4%, service prices increased by 1%. Wages grew 0.4% monthly, and the personal savings rate climbed to 4.6%. The Federal Reserve, monitoring inflation and economic data ahead of its May meeting, remains cautious about cutting interest rates, with markets expecting rates to remain unchanged.
Inflation gauge favored by Fed showed core prices ticked higher in February
Mar 28, 2025
Article from Fox Business by Eric Revell
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