Fed's Preferred Core Inflation Gauge Matches Expectations at 2.6% for January

In January, there was a slight cooling in inflation even as concern heightened regarding President Trump's approach to tariffs, according to a Commerce Department release on Friday.

The personal consumption expenditures (PCE) price index, which the Federal Reserve regards as the benchmark for inflation, saw a monthly rise of 0.3% and reflected a 2.5% increase over the year.

Stripping out volatile food and energy prices, the core PCE also advanced by 0.3% monthly, showing an annual rise to 2.6%. For the Fed, this core figure is crucial in evaluating underlying inflation patterns.

The reported figures aligned with expectations set by Dow Jones and suggest the central bank may refrain from adjusting interest rates for the moment.