The post US annual PCE inflation edges lower to 2.8% in January appeared on BitcoinEthereumNews.com.

Inflation in the United States, as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, edged lower to 2.8% in January from 2.9% in December, the US Bureau of Economic Analysis (BEA) reported on Friday. This print came in below the market expectation of 2.9%. On a monthly basis, the PCE Price Index was up 0.3%, as anticipated. The core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, rose 3.1% in January, matching analysts’ estimate. Other details of the report showed that Personal Income and Personal Spending both increased 0.4% on a monthly basis in January. Market reaction to US PCE inflation data The US Dollar Index showed no immediate reaction to these figures and was last seen gaining 0.35% on the day at 100.08. Inflation FAQs Inflation measures the rise in the price of a representative basket of goods and services. Headline inflation is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core inflation excludes more volatile elements such as food and fuel which can fluctuate because of geopolitical and seasonal factors. Core inflation is the figure economists focus on and is the level targeted by central banks, which are mandated to keep inflation at a manageable level, usually around 2%. The Consumer Price Index (CPI) measures the change in prices of a basket of goods and services over a period of time. It is usually expressed as a percentage change on a month-on-month (MoM) and year-on-year (YoY) basis. Core CPI is the figure targeted by central banks as it excludes volatile food and fuel inputs. When Core CPI rises above 2% it usually results in higher interest rates and vice versa when it falls below 2%. Since higher interest rates are positive for a currency, higher inflation…

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Filed under: News - @ March 13, 2026 1:25 pm