Latest News by Industry
Personal income increased by 0.5% in February from a month earlier
Consumer spending rose to its highest level in 40 years in February, as goods and energy prices continue to surge.
The personal consumption expenditure price index, including food and energy, rose to 6.4% in February from a year ago.
Figures released by the Commerce Department on Friday showed that prices of goods rose by 1.1% for the month, rising to their highest price since October 2021. Inflation in services was relatively low at 0.3%.
However, before abating in March, energy prices jumped 3.7%, while food inflation rose 0.4%, down slightly from the increase a month ago.
The core PCE increased, which excludes food and energy, rose 0.4% a month. This measure is closely tracked by the Federal Reserve and fuels concerns surrounding price rise.
PCE index measures price changes in consumer goods and services, excluding food and energy, in the U.S. economy. It has been the primary inflation index used by the U.S. Federal Reserve when making monetary policy decisions, since 2012.
Despite inflation surging to 40-year highs, consumer spending has risen 2.5% in the fourth quarter, down from the previous estimate of 3.1%.
The Federal Reserve had raised the interest rates for the first time in four years to combat inflation. The central bank would start shrinking its balance sheet after raising interest rates.
Separate data published by the Labor Department showed applications for U.S. state unemployment benefits totaled 202,000 rising by 14,000 from the previous week's revised level of 188,000.
Inputs from Bureau of Economic Analysis