U.S. Consumer Prices Up As Estimated In February

A report released by the Commerce Department on Friday showed U.S. consumer prices increased in line with economist estimates in the month of February, although core consumer prices rose by slightly more than expected.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in February, matching the increases seen in the two previous months as well as economist estimates.

The annual rate of growth by the PCE price index was 2.5 percent in February, unchanged from January and in line with expectations.

Meanwhile, the report said the core PCE price index, which excludes food and energy prices, climbed by 0.4 percent in February after rising by 0.3 percent in January. Economists had expected another 0.3 percent increase.

The annual rate of growth by the core PCE price index also accelerated to 2.8 percent in February from an upwardly revised 2.7 percent in January.

Economists had expected the year-over-year growth by the core PCE price index to tick up to 2.7 percent from the 2.6 percent originally reported for the previous month.

The Federal Reserve’s preferred readings on consumer price inflation were included in the Commerce Department’s report on personal income and spending.

The report said personal income increased by 0.8 percent in February after climbing by 0.7 percent in January, while personal spending rose by 0.4 percent in February after falling by 0.3 percent in January.

At 10 am ET, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of March. The consumer sentiment index for March is expected to be unrevised from the preliminary reading of 57.9, which was down from 64.7 in February and marked its lowest level since November 2022.

Federal Reserve Board Governor Michael Barr is due to participate in a “Banking Policy” discussion at the 2025 Banking Institute event hosted by the University of North Carolina Law School at 12:15 pm ET.

At 3:45 pm ET, Atlanta Federal Reserve President Raphael Bostic is scheduled to moderate a “U.S. Housing Finance Policy” panel before the Third Annual Georgia Tech-Atlanta Fed Household Finance Conference.