Financial News: U.S. Consumer Prices Rise In Line With Estimates

U.S. Consumer Prices Rise In Line With Estimates But Core Price Growth Exceeds Expectations

(RTTNews) - While the Commerce Department released a report on Friday showing U.S. consumer prices increased in line with economist estimates in the month of February, core consumer prices rose by slightly more than expected.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3 percent in February, matching the increases seen in the two previous months as well as economist estimates.

The report showed prices for goods crept up by 0.2 percent in February after climbing by 0.5 percent in January, while prices for services rose by 0.4 percent in February following a 0.3 percent increase in January.

The annual rate of growth by the PCE price index was 2.5 percent in February, unchanged from January and in line with expectations.

Meanwhile, the Commerce Department said the core PCE price index, which excludes food and energy prices, climbed by 0.4 percent in February after rising by 0.3 percent in January. Economists had expected another 0.3 percent increase.

The annual rate of growth by the core PCE price index also accelerated to 2.8 percent in February from an upwardly revised 2.7 percent in January.

Economists had expected the year-over-year growth by the core PCE price index to tick up to 2.7 percent from the 2.6 percent originally reported for the previous month.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

The report said personal income increased by 0.8 percent in February after climbing by a downwardly revised 0.7 percent in January.

Economists had expected personal income to rise by 0.4 percent compared to the 0.9 percent jump originally reported for the previous month.

Disposable personal income, or personal income less personal current taxes, grew by 0.9 percent in February following a 0.7 percent increase in January.

The Commerce Department also said personal spending rose by 0.4 percent in February after falling by a revised 0.3 percent in January.

Economists had expected personal spending to increase by 0.5 percent compared to the 0.2 percent dip originally reported for the previous month.

Excluding price changes, personal spending inched up by 0.1 percent in February after sliding by 0.6 percent in January.

With income climbing by more than spending, personal saving as a percentage of disposable personal income rose to 4.6 percent in February from 4.3 percent in January.

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