US annual PCE inflation holds steady at 2.8% in February, as expected

Inflation in the United States, as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, held steady at 2.8% in February, the US Bureau of Economic Analysis (BEA) reported on Thursday. This print came in line with the market expectation. On a monthly basis, the PCE Price Index was up 0.4%, as anticipated.

The core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, edged lower to 3% YoY from 3.1% in January.

Other details of the report showed that Personal Income declined by 0.1% on a monthly basis, while Personal Spending increased 0.5%.

Market reaction

These figures failed to trigger a significant market reaction. At the time of press, the US Dollar Index was virtually unchanged on the day at 98.96.