Core PCE Prices See Slowdown in January
Inflation Cools, Indicating Easing Pressures
The latest Core PCE Price Index report shows a moderation in inflation. Core PCE prices, which exclude volatile food and energy costs, rose by 0.30% month-over-month (MoM) in January, unchanged from the previous month. This is higher than the long-term average of 0.26%.
Key Findings
Compared to the same period last year, Core PCE prices rose by 2.8%, the lowest since March 2021. This is down from a 2.9% increase in December.
The PCE Price Index Excluding Food and Energy, also known as the core PCE price index, is a key indicator of underlying inflation trends. It is closely watched by the Federal Reserve as it makes decisions about interest rates.
The slowdown in Core PCE prices suggests that inflation is beginning to cool. This could provide some relief to consumers who have been facing rising prices for goods and services.
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