Inflation steadies in January, reaches 2.5% year-over-year

Inflation steadied slightly in January and reached 2.5% in 12 months. This is a figure in line with expectations and after several consecutive rises, according to the PCE index released Friday by the Commerce Department.

Compared to the previous month, the inflation rate remained at 0.3%.

This slowdown in the inflationary pace, considering the year and month, was expected by analysts, according to the consensus gathered by the consulting firm MarketWatch.com.

In December, the PCE index registered a cumulative 2.6% for the year.

The new data marks a reversal of the upward trend recorded since October for this index, the favorite of the Federal Reserve to reference for monetary policy.

The Fed has as its official annual inflation target rate set at 2%.

This figure released Friday counteracts above all another inflation indicator, the CPI index, which had risen for the fourth consecutive month in January, when analysts expected a slowdown in the pace of consumer price increases.

The core PCE index, i.e., which excludes volatile energy and food prices, also fell on a year-over-year basis to 2.6%, compared to 2.9% in December.