An inflation gauge closely tracked by the Federal Reserve shows price pressures easing gradually

A clearance sign is displayed at a retail clothing store in Downers Grove, Ill., Tuesday, March 12, 2024. On Friday, March 29, 2024, the government issues its latest monthly report on the Federal Reserves preferred inflation gauge, a key measure of how well the Feds drive to tame inflation is succeeding. –

Excluding volatile food and energy costs, so-called core prices rose 0.3% from January to February, down from 0.5% in the previous month. Core prices rose 2.8% from a year earlier last month, down from a revised 2.9% in January. Economists consider core prices to be a better gauge of the likely path of future inflation.

The acceleration of inflation began in the spring of 2021 as the economy roared back from the pandemic recession, overwhelming factories, ports and freight yards with orders. In March 2022, the Fed began raising its benchmark interest rate to try to slow borrowing and spending and cool inflation, eventually boosting its rate 11 times to a 23-year high. Those sharply higher rates worked as expected in helping tame inflation.

The Fed tends to favor the inflation gauge that the government issued Friday — the personal consumption expenditures price index — over the better-known. The PCE index tries to account for changes in how people shop when inflation jumps. It can capture, for example, when consumers switch from pricier national brands to cheaper store brands.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Jerome Powell may provide hints of whether Federal Reserve is edging close to rate cutsTwo weeks ago, Chair Jerome Powell suggested that the Federal Reserve was 'not far' from gaining the confidence it needed that inflation was headed sustainably toward its 2% target level, which would allow it to start cutting its benchmark interest rate.
Source: WashTimes - 🏆 235. / 63 Read more »

Powell may provide hints of whether Federal Reserve is edging close to rate cutsOn Wednesday, the Fed is considered sure to keep its short-term rate, now at a 23-year high of nearly 5.4%, unchanged for a fifth straight time.
Source: komonews - 🏆 272. / 63 Read more »

Powell may hint whether Federal Reserve is edging close to rate cutsFederal Reserve Chair Jerome Powell is expected to be pressed on the topic in a news conference Wednesday.
Source: 10News - 🏆 732. / 50 Read more »

Powell may provide hints of whether Federal Reserve is edging close to rate cutsThe latest measures of U.S. inflation have turned out to be hotter than expected.
Source: wjxt4 - 🏆 246. / 63 Read more »

Powell may provide hints of whether Federal Reserve is edging close to rate cutsThe latest measures of U.S. inflation have turned out to be hotter than expected.
Source: ksatnews - 🏆 442. / 53 Read more »

Powell may provide hints of whether Federal Reserve is edging close to rate cutsWASHINGTON (AP) — Two weeks ago, Chair Jerome Powell suggested that the Federal Reserve was “not far” from gaining the confidence it needed that inflation was headed sustainably toward its 2% target level, which would allow it to start cutting its benchmark interest rate.
Source: AP - 🏆 728. / 51 Read more »