Fed's favorite core inflation measure hits 2.6% in January, as expected

[BumRushDaShow]

Source: CNBC

Published Fri, Feb 28 2025 8:34 AM EST Updated 18 Min Ago


Inflation eased slightly in January as worries accelerated over President Donald Trump’s tariff plans, according to a Commerce Department report Friday.

The personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, increased 0.3% for the month and showed a 2.5% annual rate.

Excluding food and energy, the core PCE also rose 0.3% for the month and was at 2.6% annually. Fed officials more closely follow the core measure as a better indicator of longer-term trends. The 12-month core measure showed a step down from the upwardly revised 2.9% level in December. Headline inflation eased by 0.1 percentage point.

The numbers all were in line with Dow Jones consensus estimates and likely keep the central bank on hold for the time being regarding interest rates. Elsewhere in the report, income and spending numbers showed some surprises.

Read more: https://www.cnbc.com/2025/02/28/pce-inflation-january-2025-.html

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Article updated.

Previous article -

Published Fri, Feb 28 2025 8:34 AM EST Updated 18 Min Ago


Inflation eased slightly in January as worries accelerated over President Donald Trump's tariff plans, according to a Commerce Department report Friday.

The personal consumption expenditures price index, the Federal Reserve's preferred inflation measure, increased 0.3% for the month and showed a 2.5% annual rate.

Excluding food and energy, core PCE also rose 0.3% for the month and was at 2.6% annually. Fed officials more closely follow the core measure as a better indicator of longer-term trends.

The numbers all were in line with Dow Jones consensus estimates and likely keep the central bank on hold for the time being regarding interest rates.

This is breaking news. Please refresh for updates.

Original article -

Published Fri, Feb 28 2025 8:34 AM EST Updated 3 Min Ago


The personal consumption expenditures price index was expected to show a core annual inflation rate of 2.6% in January, according to the Dow Jones consensus forecast.

This is breaking news. Please refresh for updates.

[yourout]

1. Unemployment going up inflation up and the stock market probably going down.

Trump is off to a great start if he's trying to get us into a depression.

[mikelewis]

2. It's called Doom Spending

https://www.cnbc.com/2025/02/27/1-in-5-americans-are-doom-spending-heres-how-that-can-backfire.html


The personal expenditures are up because 20% of American are buying everything they can before the tariffs hit in full force.

[paleotn]

3. And on the other side of this, consumer spending declines

They already spent a ton of consumption pre tariffs. Business spending as well. Couple that with hundreds of thousands of unemployed federal workers, mix in economic feedback, and we've got a nasty recession on our hands by Q3 / Q4. Q1 2026 at the latest. Plus inflation from tariffed imports, despite reduced consumption. Most people just don't realize that there is limited domestic production of a wide range of everyday things. For some things, none at all. And what there is is markedly more expensive than they're use to buying. Clothing and foot ware being big ones. Lots of others.

If you were teaching a master class on crashing an economy, you'd use Donny's current narrative as the textbook.

[mikelewis]

4. Spot on!

And you're right, it's going to take some time for the wheels to come off this bus. It's not even 100 days yet.

[Blasphemer]

6. Yep. I did it in November and December. nt

[mikelewis]

7. And now the people who voted for him... or sat on the fence...They're starting... nt

[Johnny2X2X]

5. Spending is falling

https://www.reuters.com/markets/us/us-consumer-spending-falls-january-monthly-inflation-rises-2025-02-28/

Save, save, save! Now is the time to protect yourself. Pinch those pennies to save as much as you can.

[mdbl]

8. Can anyone believe anything being released from Dump's agencies?

After all, he acts like they are all his and should lie for him with impunity.