United States: Major Inflation Index Slows to 2.5% Year-on-Year
WASHINGTON, February 28, 2025 – Inflation in the United States decelerated in January to 2.5% year-on-year, down from 2.6% the previous month, aligning with expectations after several consecutive increases, as reported by the official Personal Consumption Expenditures (PCE) index released on Friday.
On a monthly basis, the inflation rate held steady at 0.3%, according to the Department of Commerce.
This slowdown—both year-on-year and month-on-month—was anticipated by analysts, based on consensus data published by MarketWatch.com.
The current figure marks a departure from the acceleration trend observed since October for this index, which the Federal Reserve favors for shaping its monetary policy. The central bank aims for an inflation rate of 2%.
Notably, this report contrasts with another inflation measure, the Producer Price Index (PPI), which accelerated for the fourth consecutive month in January, defying analysts’ expectations of a slowdown.
The core PCE index, which excludes the volatile prices of food and energy, also demonstrated a significant year-on-year slowdown, recording 2.6% compared to 2.9% in December.
