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.
Key Points
- PCE price index rose 2.5 percent over 12 months
- Core PCE prices increased by 2.8 percent
- Prior months' figures were revised upwards
- Data echoes earlier consumer and producer price reports
Pros
- In line with Wall Street forecasts
- Revised figures show stronger inflation than previously believed
Cons
- Surge in inflation may lead to economic instability