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Key Fed measure shows core inflation at 2.8%, in line with expectations

31 January 2025
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Key Fed measure shows core inflation at 2.8%, in line with expectations
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Inflation closed out 2024 strong, with the personal consumption expenditures price index increasing 2.6% year-over-year in December, meeting expectations and above the Fed’s 2% target. Core PCE also came in at 2.8%, signaling elevated inflation levels. Fed Governor Michelle Bowman expects inflation to decelerate in 2025 but suggests keeping interest rates on hold until clear signs of improvement are seen.

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