PCE inflation gauge matches expectations, offering relief to Fed

Published On Feb 28, 2025, 8:45 AM

The latest Personal Consumption Expenditures (PCE) inflation data showed a modest increase in prices compared to last month, but less than last year's figures, which aligns with what the Federal Reserve expected. This data suggests that the Fed may maintain current interest rates during their March meeting, as inflation appears to be stabilizing. The core PCE index increased 0.3% month-over-month and 2.6% year-over-year, down from last month’s 2.8%. This could provide some relief to policymakers as they evaluate ongoing economic conditions and inflation expectations.