Fed's favored inflation gauge remained stubbornly high in January as consumer price pressures persist

Core Insights - The PCE index rose 0.3% month-over-month in January and is up 2.8% year-over-year, slightly below the expected 2.9% [2] - Core PCE, excluding food and energy, increased 0.4% month-over-month and 3.1% year-over-year, aligning with economists' expectations [3] - Federal Reserve officials are closely monitoring inflation data, with a focus on achieving a long-term target of 2% [4] Price Trends - Prices for goods increased 1.3% year-over-year in January, down from 1.7% in December [5] - Durable goods prices rose 2.2% year-over-year in January, while nondurable goods prices increased only 0.8%, the lowest since August [6] - Services prices saw a 3.5% increase year-over-year in January, slightly up from 3.4% [6] Savings Rate - The personal savings rate was 4.5% in January, an increase from 4% in the previous quarter, marking the highest level since July [7]