#PCEInflationWatch U.S. Core PCE Inflation Rises to 2.5%: What It Means for the Economy

The latest U.S. economic data is in, and it’s painting an interesting picture of inflation trends. The core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s go-to inflation measure, rose to an annualized rate of 2.5% in Q4 2024—up from 2.2% in the previous quarter. While this aligns with market expectations, it signals that inflation isn’t cooling down as quickly as some had hoped.