The preferred inflation indicator for the US Federal Reserve rises more than expected!

Data released today, Friday, showed that the Personal Consumption Expenditures (PCE) index in the United States, which is the Federal Reserve's preferred measure for assessing inflation, rose at a faster pace than market expectations in February.

According to the data, the index recorded a monthly growth of 0.4%, surpassing expectations that pointed to a rise of 0.3%, compared to the reading of 0.3% in January.

On an annual basis, the index remained stable at 2.8% in February, exceeding expectations that anticipated an increase to 2.7%, while the previous reading had recorded 2.6% in January.

The Personal Consumption Expenditures index is a key tool for measuring inflation, as it reflects changes in the prices of goods and services consumed by individuals, excluding food and energy. The index is noted for its accuracy in providing a comprehensive picture of consumer behavior by measuring total spending, making it more inclusive compared to the core Consumer Price Index.