Economic Buzz: US PCE price index rise 0.3% in January

The U.S. Commerce Department said on Friday its Personal Consumption Expenditures Price Index (PCE) rose largely in line with expectations in January, the latest sign that inflation remained relatively well behaved ahead of the war with Iran that began last month.

Friday's PCE Index rose 0.3% from December, compared with the prior 0.4% rise in December. Stripping out the volatile food and energy components, the so-called core PCE Price ‌Index increased 0.4% last month, in line with expectations.

In the 12 months through January, PCE inflation increased 2.8%, compared with expectations for a 2.9% rise. The core PCE Price Index increased 3.1% last month. That was in line with estimates and followed a revised 3% rise in the core inflation in December. The Federal Reserve tracks the PCE price measures for its 2% inflation target.

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