Inflation held sticky at 3% as U.S. headed into war with Iran, key Fed gauge shows [View all]
Source: CNBC
Published Thu, Apr 9 2026 8:35 AM EDT Updated 14 Min Ago
Core inflation held above the Federal Reserve’s target before the recent surge in energy prices, according to a key gauge released Thursday that offers the central bank a snapshot of conditions leading into the Iran war. The core personal consumption expenditures price index, which excludes food and energy, rose a seasonally adjusted 3% in February, the Commerce Department reported. The all-items headline inflation measure increased 2.8%.
Both readings were in line with the Dow Jones consensus. The core annual inflation rate was 0.1 percentage point lower than in January while headline was unchanged. On a monthly basis, both core and headline prices rose 0.4%, also meeting forecasts.
The Fed uses the PCE price index as its primary yardstick and forecasting tool for inflation. The Fed, which targets 2% inflation, sees core as a better indicator of longer-term trends.
In addition to the inflation readings, the report also showed consumer spending unexpectedly down 0.1% on the month, while personal income rose 0.4%. Economists had expected spending to rise 0.6% with income up 0.4%.
Read more: https://www.cnbc.com/2026/04/09/core-inflation-was-3percent-in-february-as-expected-key-fed-gauge-shows.html
From the source -
Link to tweet
@BEA_News
People's incomes fell 0.1% in February; spending grew 0.5%. Both figures are in current dollars.
https://bea.gov/data/income-sa
Article updated.
Previous article/headline -
Published Thu, Apr 9 2026 8:35 AM EDT Updated 1 Min Ago
Core inflation eased slightly in February before the recent surge in energy prices, according to a key gauge released Thursday that offers the Federal Reserve a snapshot of conditions leading into the Iran war.
The core personal consumption expenditures price index, which excludes food and energy, rose a seasonally adjusted 3% in February, the Commerce Department reported. The all-items headline inflation measure increased 2.8%.
Both readings were in line with the Dow Jones consensus. The core annual inflation rate was 0.1 percentage point lower than in January while headline was unchanged. On a monthly basis, both core and headline prices rose 0.4%, also meeting forecasts.
The Fed uses the PCE price index as its primary yardstick and forecasting tool for inflation. The Fed, which targets 2% inflation, sees core as a better indicator of longer-term trends.
This is breaking news. Please refresh for updates.
Original article -
The personal consumption expenditures price index was expected to show a 3% core inflation rate in February, according to the Dow Jones consensus.
This is breaking news. Please refresh for updates.
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