US PCE Inflation Holds at 2.8% in February

U.S. personal consumption expenditures inflation held at 2.8% year-over-year in February, the Bureau of Economic Analysis reported, matching economists' forecasts and indicating consumer prices were 2.8% higher than a year earlier.

The PCE price index measures changes in prices for goods and services tied to household spending and is released monthly by the BEA. The February report confirmed economists' expectations of a 2.8% annual pace and covers price and spending changes during the month of February.

The BEA also publishes a core PCE figure that excludes food and energy. Central bankers and analysts watch core PCE to evaluate underlying inflation trends because food and energy prices can be more volatile.

The Federal Reserve uses the PCE series as its primary inflation gauge and compares it with its 2% inflation objective. The February reading remains above that 2% target but is lower than the peak annual rates recorded in 2022.

The BEA report includes category-level breakdowns showing which goods and services contributed to the change in the overall index. Monthly releases provide both headline and detailed measures that separate volatile items from more stable price trends.

Policymakers, economists and market participants monitor the PCE alongside other indicators such as consumer spending, income and employment to track developments in inflation and consumer behavior.