Core prices rose 0.36% in January in the PCE index (Nov and Dec price levels were revised up slightly), raising the 12-month inflation rate to 3.1% This index had fallen to 2.6% in April 2025 Headline was +0.28% in January and 2.8% over the year
Nick Timiraos
Nick TimiraosMar 2, 22:53
CPI and PPI translations into PCE suggest core prices in January rose around 0.43%, give or take. That would be the highest month-over-month reading since February (which was +0.448%) and annualizes to 5.3%. It corresponds to a 3.1% y/y rate, the highest since March 2024.
Core PCE 1-month annualized: 4.5% 3-month annualized: 3.7% 6-month annualized: 3.1% Headline PCE 1-month annualized: 3.4% 3-month annualized: 3.5% 6-month annualized: 3.2%
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