The headline annual inflation rate, as measured by personal consumption expenditures (PCE), rose to 2.5% in February as expected, up from 2.4% in January as personal spending came in unexpectedly high.
While the monthly inflation rate, according to the Fed’s favored gauge of price increases, dipped from 0.4% to 0.3%, personal spending rose by 0.8% to $145.5 billion, more than the 0.5% expected and higher than the 0.2% increase seen in January.
While the core annual rate came in at 2.8% in February, as expected, January’s 2.8% rate was revised higher to 2.9%.
This leaves inflation still looking a little sticky, especially when taken together with February’s consumer price index (CPI) inflation data published earlier this month that saw the annual headline rate rise to 3.2% from 3.1% in the previous month and the producer price (PPI) data showing even stronger gains.
Also Read: Inflation Ticks Higher In February: Is A May Interest Rate Cut In The Cards?
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