Inflation Data Overview

Recent inflation data reveals an uptick in the Fed's preferred measure, the PCE index, which reported a year-over-year increase of 2.3%. This figure aligns with expectations but raises concerns as it remains higher than the desired 2% target. Core inflation, which excludes food and energy prices, held steady at 2.8%, indicating persistent inflationary pressures. Analysts noted that while consumer spending showed healthy growth, the weaker inflation trends could complicate the Federal Reserve's upcoming rate decisions.