US inflation eases in January as headline PCE dips to 2.8pc

13th Mar 2026 12:23

(Sharecast News) - US inflation eased slightly at the beginning of 2025, according to the Bureau of Economic Analysis, with headline PCE growth slowing to 2.8% year-on-year in January, down from 2.9% in December.

January's reading came in just below expectations, while the monthly increase of 0.3% was in line with forecasts.

The core PCE index, the Federal Reserve's preferred measure of underlying inflation, rose 0.4% on the month, the same pace as December's ten‑month high. On an annualised basis, however, core PCE accelerated to 3.1%, up from 3% in the prior month and still well above the central bank's 2% target.

The BEA's report also showed that personal income and personal spending had both risen by 0.4% in January, pointing to steady consumer momentum despite lingering price pressures.

Reporting by Iain Gilbert at Sharecast.com