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 Fed Chair Jerome Powell wasn’t fretting about it. The data was “pretty much in line with our expectations,” Powell said Friday at an event hosted by the San Francisco Fed. He added that it’s generally good when data aligns with the central bank’s forecasts. The report also contained some welcome news. Central bankers will likely take some solace in the core PCE index that excludes energy and food