FX.co ★ US PCE Prices Rise 0.3%, Core Rise the Most in Over a Year

The US Personal Consumption Expenditures (PCE) price index saw a 0.3% increase month-over-month in February 2025, mirroring the growth rate of the preceding two months, and aligning with market expectations. Goods prices experienced a 0.2% growth, a slowdown from 0.5% in January, while service prices climbed by 0.4%, up from the 0.2% observed the month before. The core PCE index, which strips out the often unpredictable food and energy sectors, rose by 0.4%—the highest rate since January 2024—exceeding the previous month's 0.3% and anticipations of 0.3%. Food prices remained stable compared to January's 0.3% increase, whereas energy-related goods and services edged up by 0.1%, following a notable 1.3% rise in January. On an annual basis, PCE prices increased by 2.5%, consistent with January's rate and predictions. However, the core annual inflation rate climbed to 2.8%, surpassing an upwardly revised 2.7% and the anticipated 2.7%.