Inflation Rate Hits 2.6% as Expected
The personal consumption expenditures price index (PCE) rose 0.3% in January, matching expectations, with a 2.5% annual inflation rate. Inflation eased slightly due to concerns over President Trump's tariff plans. The core PCE measure, preferred by the Federal Reserve, increased to 2.6%, within range of projections.
- This slight easing of inflation rates may provide temporary relief for Fed policymakers, but it also underscores the ongoing uncertainty surrounding trade tensions and their impact on consumer prices.
- How will a potential June rate cut be received by global markets, and what implications might it have for the US economy's growth trajectory?