The Fed's Favorite Measure Of Inflation Was Hotter Than Expected at the End of 2025

Key Takeaways The Personal Consumption Expenditures price index rose 2.9% over the year in December, exceeding forecaster expectations and hitting their highest level since March 2024.Core PCE, which excludes volatile food and energy costs, rose 3%, the highest level since last February.The report is another indication that the Federal Reserve's efforts to push inflation down to a 2% annual rate have a long way to go, and could put pressure on the Fed to keep interest rates high. After a turbulent year, ...