The federal inflation scale showed that prices rise in February

The Federal Reserve’s favorite inflation scale showed that prices rose in February at a pace that still exceeds the target level of the central bank amid its continuous efforts to reduce inflation.

On Friday, the Ministry of Commerce stated that the Personal Consumption Expenditure Index (PCE) increased by 0.3 % from the previous month and 2.5 % on an annual basis. These numbers were in line with the estimates of economists covered by LSEG.

Core PCE, which excludes flying food and energy prices, increased by 0.4 % for this month and 2.8 % over last year, which is slightly higher than 0.3 % estimates and 2.7 %, respectively.

Federal reserve policymakers focus on the main number of PCE as they try to slow the pace of prices to their 2 % goal, although they look at the basic data as a better indicator of inflation. The main title of January has not changed by 2.5 %, while Core PCE rose above 2.6 % last month.

The prices of goods increased by 0.4 % on an annual basis in February, a slower frequency than 0.6 % reported in January – although the price of goods was relatively flat or even a decrease in the previous months. Service prices increased by 1 % in February, which is a little slower than annual growth by 1.6 % last month.

Wages and salaries increased by 0.4 % on a monthly basis in February, an increase of 0.2 % per month.

The personal savings rate as a percentage of available income was 4.6 % in February, an increase of 4.3 % last month and an increase of more than 3.3 % to 4.3 % was in the last half of 2025.

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