The latest reading of the Federal Reserve’s favorite inflation gauge was in line with economists’ expectations, as price increases hovered above the central bank’s target even after months of cooling.
The Personal Consumption Expenditures inflation measure climbed by 2.5 percent in February compared with a year earlier, according to a report released by the Commerce Department on Friday.
The Fed officially targets that measure as it tries to achieve 2 percent annual inflation, so the latest reading, while widely anticipated, is evidence that inflation still has farther to fall.
The report’s details underscored that inflation continues to moderate, even if the process is bumpy.
And on a monthly basis, inflation cooled slightly.
Organizations:
Commerce Department, Bloomberg, Fed