#PCEInflationWhatch

As of February 2, 2025, the Personal Consumption Expenditures (PCE) price index has risen by 0.3%, bringing the annual inflation rate to 2.6%. Core PCE inflation, which excludes food and energy prices, increased by 0.2%, maintaining a 2.8% annual rate. These figures suggest that while inflation is gradually decreasing, it remains above the Federal Reserve's 2% target. The Federal Reserve has adjusted its projections, now anticipating core PCE inflation to be 2.5% in 2025, up from the previous estimate of 2.2%. Investors are advised to monitor these developments closely, as persistent inflation may influence Federal Reserve policies and impact various sectors.