U.S. consumer prices rose in line with expectations in January, according to data released Friday by the Commerce Department.
The department reported that its personal consumption expenditures (PCE) price index increased 0.3% during the month, following a 0.4% rise in December. The result matched economists’ forecasts.
On a yearly basis, the PCE price index rose 2.8% in January, slightly easing from 2.9% in December. Economists had expected the annual rate to remain unchanged.
Excluding the volatile food and energy components, the core PCE price index advanced 0.4% in January, the same monthly increase recorded in December and in line with market expectations.
However, the annual rate of core PCE inflation edged higher to 3.1% in January, compared with 3.0% the previous month. Economists had anticipated the pace of annual growth would hold steady.
These inflation figures, which represent the Federal Reserve’s preferred gauge of consumer price pressures, were released as part of the Commerce Department’s monthly report on personal income and spending.
According to the report, personal income increased 0.4% in January, after rising 0.3% in December. Meanwhile, consumer spending also climbed 0.4%, matching the growth seen in the prior month.