The US PCE price index rose 0.4% month over month, in line with expectations and up from January’s 0.3% increase. Goods prices climbed 0.7%, rebounding from flat growth in January, led by higher costs for motor vehicles and parts, recreational goods, gasoline, clothing, and food. In contrast, services inflation eased to 0.2% from 0.4%, reflecting slower price gains in healthcare, financial services, and recreational services.
The core PCE index, which excludes food and energy, also increased 0.4% after a 0.3% rise in January. On an annual basis, the headline PCE index reached 2.8%, while the core measure remained at 3.0%.
