Home » February PCE Report: Core Inflation In-Line With Expectations

February PCE Report: Core Inflation In-Line With Expectations

The Numbers

The Bureau of Economic Analysis released the Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures price index, on Friday morning.

The core index rose 0.3% in February, equal to economists’ consensus estimate and down from the 0.4% increase in January. The index, which excludes food and energy components, was up 2.8% from a year earlier, according to the BEA, matching the January year-over-year change.

The data comes as this year’s economic indicators show a resilient economy, especially the labor market, with hotter-than-expected inflation. The central bank is taking a wait-and-see approach to lowering interest rates as it assesses whether progress on reducing inflation to its 2% annual target has stalled.

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