Core inflation in February hits 2.8%, higher than expected; spending increases 0.4% [View all]

[BumRushDaShow]

Source: CNBC

Published Fri, Mar 28 2025 8:33 AM EDT Updated 6 Min Ago


The Federal Reserve’s key inflation measure rose more than expected in February while consumer spending also posted a smaller than projected increase, the Commerce Department reported Friday.

The core personal consumption expenditures price index showed a 0.4% increase for the month, the biggest monthly gain since January 2024, putting the 12-month inflation rate at 2.8%. Economists surveyed by Dow Jones had been looking for respective numbers of 0.3% and and 2.7%.

Core inflation excludes volatile food and energy prices and is generally considered a better indicator of long-term inflation trends. In the all-items measure, the price index rose 0.3% on the month and 2.5% from a year ago, both in line with forecasts.

At the same time, the Bureau of Economic Analysis report showed that consumer spending accelerated 0.4% for the month, below the 0.5% forecast. That came as personal income posted a 0.8% rise, against the estimate for 0.4%.

Read more: https://www.cnbc.com/2025/03/28/pce-inflation-february-2025-.html

---

Article updated.

Previous article/headlines -

Core inflation in February hits 2.8%, hotter than expected; spending increases 0.4%

Published Fri, Mar 28 2025 8:33 AM EDT Updated 3 Min Ago


The Federal Reserve's key inflation measure rose more than expected in February while consumer spending also posted a smaller than projected increase, the Commerce Department reported Friday. The core personal consumption expenditures price index showed a 0.4% increase for the month, putting the 12-month inflation rate at 2.8%.

Economists surveyed by Dow Jones had been looking for respective numbers of 0.3% and 0.3% and 2.7%. Core inflation excludes volatile food and energy prices and is generally considered a better indicator of long-term inflation trends. In the all-items measure, the price index rose 0.3% on the month and 2.5% from a year ago, both in line with forecasts.

At the same time, the Bureau of Economic Analysis report showed that consumer spending accelerated 0.4% for the month, below the 0.5% forecast. That came as personal income posted a 0.8% rise, against the estimate for 0.4%.

Fed officials focus on the PCE inflation reading as they consider it a broader measure that also adjusts for changes in consumer behavior and places less of an emphasis on housing than the Labor Department's consumer price index.

This is breaking news. Please refresh for updates.

Original article/headline -

Core inflation in February hits 2.8%, hotter than expected; income jumps 0.8%

Published Fri, Mar 28 2025 8:33 AM EDT Updated 1 Min Ago


The personal consumption expenditures price index was expected to increase 0.3% in February while spending was projected to rise 0.5%, according to the Dow Jones consensus.

This is breaking news. Please refresh for updates