Inflation Surge in February 2024

Inflation surged higher in February, contradicting earlier predictions of a decline in 2024. The Personal Consumption Expenditures (PCE) price index rose 2.5 percent over the past 12 months, with core PCE prices increasing by 2.8 percent. The data was in line with Wall Street forecasts, and prior months' figures were revised upwards, indicating stronger inflation than previously believed. Federal Reserve Chairman Jerome Powell had hinted at these numbers in a recent press conference.

The Fed's Inflation Confidence Game

Inflation is rising, with the PCE price index showing an annualized inflation rate of 4.2% and core PCE inflation at 5.1%. Goods inflation has partially reversed, with durable goods prices rising for the first time since May. Services inflation is also on the rise, with the category excluding housing and energy showing a 7.4% annual rate of inflation.

US Inflation

The pace of price hikes in the US accelerated in January, with the PCE price index rising 0.3%. Core PCE inflation rose 0.4%, up 2.8% over the past 12 months. The figures were in line with Wall Street expectations.