US inflation moderates slightly in January to 2.8%
Economists surveyed by Dow Jones Newswires and The Wall Street Journal expected the Personal Consumption Expenditures (PCE) Price Index to remain unchanged from December, when it was 2.9%.
Grocery store in New York / TIMOTHY A. CLARY.
The Federal Reserve's preferred inflation gauge was slightly lower than expected at 2.8% annually in January, according to data released Friday.
Economists polled by Dow Jones Newswires and The Wall Street Journal expected the Personal Consumption Expenditure Expenditures (PCE) Index to be unchanged from December, when it was 2.9%, according to AFP.
Core PCE, which excludes volatile energy and food prices, rose 3.1%, its highest level since March 2024.
The U.S. has experienced stubbornly high inflation since the pandemic, with households hit by years of higher-than-expected prices.
Reducing the cost of living has been a key political issue for President Donald Trump, who has claimed that prices are coming down despite consumer complaints about the high cost of commodities.
The January PCE data released Friday was delayed due to a partial government shutdown last year. It does not reflect the spikes in oil prices and their associated inflationary effects caused by the war in the Middle East.
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