The latest US inflation report showed that rising prices continue to weigh on American consumers.
The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures price index, was up 2.5% for the 12 months that ended in February, a faster pace than January’s 2.4% rise in prices. However, it was in line with FactSet consensus estimates.
Driving the increase in the annual inflation rate was a 2.3% jump last month in energy prices.
The Commerce Department data released Friday means the Fed is even further from achieving its goal of 2% inflation.
But the report also contained some welcome news.
Central bankers will likely take some solace in the core PCE index that excludes energy and food. That index slowed slightly to 2.8% from the 2.9% annual rate seen in January. And, on a monthly basis, it slowed to 0.3% from 0.5% in January. Both core inflation measures were in line with expectations.
Another bright spot was the 0.3% overall monthly pace of price increases, a slight drop from 0.4% in January. That was below what economists polled by FactSet forecast.
This story is developing and will be updated.
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