EconomyLens.com
No Result
View All Result
Friday, July 4, 2025
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
EconomyLens.com
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials
No Result
View All Result
EconomyLens.com
No Result
View All Result
Home Economy

US Fed’s favored inflation gauge falls, but price pressures remain

Thomas Barnes by Thomas Barnes
March 1, 2024
in Economy
Reading Time: 5 mins read
A A
8
19
SHARES
237
VIEWS
Share on FacebookShare on Twitter

Headline inflation fell in January. ©AFP

Washington (AFP) – The US central bank’s favored measure of inflation edged lower on an annual basis in January, government data showed Thursday, but a metric stripping out volatile food and energy prices jumped month-over-month.

The new data highlights the challenges facing the Federal Reserve, which has recently poured cold water on the prospects of early rate cuts amid a strong economy, low unemployment and inflation that remains above its long-term target of two percent.

The personal consumption expenditures (PCE) price index rose at an annual rate of 2.4 percent in January, down 0.2 percentage points from December, the Department of Commerce said in a statement.

Related

Eight OPEC+ alliance members move toward output hike at meeting

Bombers and a ‘beautiful bill’ — Trump celebrates US Independence Day

BRICS nations to gather without Xi, Putin

South American bloc looks to Asia, Europe in face of Trump trade war

China to require EU brandy exporters to raise prices or face tariffs

“The signal from the data remains that the economy continues to expand, and inflation is receding gradually,” High Frequency Economics (HFE) chief US economist Rubeela Farooqi wrote in a note to clients.

Fed officials have been debating the right time to start lowering rates, which currently stand at a 23-year high of between 5.25 and 5.50 percent.

A number of officials have come out in recent weeks to suggest the Fed can afford to be patient before it begins cutting rates.

Speaking in the US state of Georgia on Thursday, Atlanta Fed president Raphael Bostic said it would “probably be appropriate” for the US central bank to start lowering its key lending rate “in the summer time.”

– Core inflation rises –

On a monthly level, headline PCE inflation rose by 0.3 percent in January, slightly below market expectations, according to Briefing.com.

The closely watched “core inflation” measure, which strips out volatile food and energy costs, also eased, rising by 2.8 percent on an annual basis.

However, core PCE increased by 0.4 percent from a month earlier, indicating an uptick in underlying inflation from December to January.

The rise is likely to keep up the pressure on the Fed to ensure that any fall in inflation is more widespread before it starts reducing interest rates.

“Fed officials will remain patient and wait for more data that confirms that inflation is moving sustainably towards target,” Farooqi from HFE said.

There was also a sharp increase in personal income, which jumped by 1.0 percent in January after increasing by just 0.3 percent in December.

The move “primarily reflected increases in government social benefits, personal income receipts on assets, and compensation,” the Commerce Department said.

The personal savings rate, which measures how much people save as a percentage of their disposable income, ticked higher to 3.8 percent in January from 3.7 percent a month earlier.

The slight increase stands in stark contrast to a sharp drop between November and December, and suggests that consumers are beginning to rebuild their financial buffers.

© 2024 AFP

Tags: Federal Reserveinflationinterest rates
Share8Tweet5Share1Pin2Send
Previous Post

EU lawmakers back transparency rules for Airbnb-style rentals

Next Post

Stocks climb after US inflation dips

Thomas Barnes

Thomas Barnes

Related Posts

Economy

Rio to host BRICS summit wary of Trump

July 4, 2025
Economy

Trump to sign ‘big, beautiful’ bill on US Independence Day

July 4, 2025
Economy

Trump wins ‘phenomenal’ victory as Congress passes flagship bill

July 4, 2025
Economy

What is the state of play with Trump’s tariffs?

July 3, 2025
Economy

Where do trade talks stand in the rush to avert higher US tariffs?

July 4, 2025
Economy

World Bank’s IFC ramps up investment amid global uncertainty

July 4, 2025
Next Post

Stocks climb after US inflation dips

Brazil urges G20 ensure 'super-rich pay fair share' of taxes

European airlines, facing jet delivery delays, see profits soar

US probes security risks posed by Chinese tech in cars

0 0 votes
Article Rating
Subscribe
Notify of
guest
guest
8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
  • Trending
  • Comments
  • Latest

New York ruling deals Trump business a major blow

September 30, 2024

Elon Musk’s X fights Australian watchdog over church stabbing posts

April 21, 2024

Women journalists bear the brunt of cyberbullying

April 22, 2024

France probes TotalEnergies over 2021 Mozambique attack

May 6, 2024

Ghanaian finance ministry warns against fallout from anti-LGBTQ law

74

New York ruling deals Trump business a major blow

72

Shady bleaching jabs fuel health fears, scams in W. Africa

71

Stock markets waver, oil prices edge up

65

Eight OPEC+ alliance members move toward output hike at meeting

July 4, 2025

Bombers and a ‘beautiful bill’ — Trump celebrates US Independence Day

July 4, 2025

BRICS nations to denounce Trump tariffs

July 4, 2025

Trump signs ‘big, beautiful’ bill on US Independence Day

July 4, 2025
EconomyLens Logo

We bring the world economy to you. Get the latest news and insights on the global economy, from trade and finance to technology and innovation.

Pages

  • Home
  • About Us
  • Privacy Policy
  • Contact Us

Categories

  • Business
  • Economy
  • Markets
  • Tech
  • Editorials

Network

  • Coolinarco.com
  • CasualSelf.com
  • Fit.CasualSelf.com
  • Sport.CasualSelf.com
  • SportBeep.com
  • MachinaSphere.com
  • MagnifyPost.com
  • TodayAiNews.com
  • VideosArena.com
© 2025 EconomyLens.com - Top economic news from around the world.
No Result
View All Result
  • Home
  • Economy
  • Business
  • Markets
  • Tech
  • Editorials

© 2024 EconomyLens.com - Top economic news from around the world.